A young couple wanted to buy a house. They became self-employed consultants about 7 months ago. Usually to qualify for a mortgage, lenders require 2 years tax returns. This particular lender would use the average of their 2 years net income to calculate an acceptable monthly income. (Some conventional loans allow use of only one year tax returns.)
Luckily, our borrowers had investments with a significant amount of money. We used an Asset Depletion Income calculator (offered by one of our lenders) to arrive to the qualifying income.