If you’re self-employed, chances are you’ve asked this question with genuine concern:

“What do lenders actually count as income?”

And usually, the answer you get feels… unhelpful.
Vague.
Overly technical.
Or worse—wrong for how your business actually works.

Here’s the reality most borrowers never get clearly explained:

Self-employed income doesn’t live on a pay stub.

Income for Business Owners Is About Flow, Not Forms

When you work for yourself, income shows up differently. It may come from:

• Client deposits

• Business revenue

• Owner distributions

• Contract payments

• Digital platforms like Venmo, Zelle, Stripe, Square, or Cash App

None of that is unusual.
None of that is suspicious.
And all of it can count—depending on the loan program.

The mistake is assuming every lender measures income the same way.

They don’t.

How Different Loan Programs View the Same Business

Bank Statement Loans

These focus on what hits your account.
Consistent deposits tell the story—not how you label them.

Profit & Loss–Based Loans

These zoom out and ask a better question:

“After expenses, what does the business actually earn?”

Gross income minus documented expenses gives lenders clarity without forcing your business into a W-2 box.

1099 Income

With contract work, lenders often annualize revenue—looking at trends instead of isolated months.

Consistency matters more than perfection.

DSCR Loans

For real estate investors, this is where things shift.

Debt Service Coverage Ratio loans focus only on the property’s income.
If the rent covers the payment, your personal income becomes largely irrelevant.

The Line That Changes Everything

Here’s the most overlooked truth in lending:

Your income is not defined by the IRS—it’s defined by how money moves through your business.

That’s not a loophole.
That’s simply understanding reality.

And it’s why experienced guidance matters.

This is exactly where Rich Bonn with Habayit Home Loans focuses:
not on forcing your income to fit a template, but on explaining it correctly.

No Pressure. No Tricks. Just Clarity.

There’s no “one right answer” for self-employed income.
There is a right explanation—for your specific situation.

That’s the difference between confusion and confidence.

Contact Information

Rich Bonn
Habayit Home Loans
📞 281.841.1723
📍 4660 Beechnut St, Ste 225
Houston, TX 77096