By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed October 29, 2026. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015, and is not affiliated with the U.S. Department of Veterans Affairs.
Short answer: Self-employed veterans qualify for VA loans using typically two years of personal and business tax returns. The lender averages net income after allowable add-backs like depreciation. VA considers self-employment income stable after 2 years in business, and sometimes sooner with prior related employment or specialized training (38 CFR 36.4340).
Two years of personal (and business, if applicable) returns, a year-to-date P&L, and possibly a balance sheet and business bank statements.
Net income from Schedule C/K-1, plus depreciation and certain non-cash expenses, averaged over 24 months. Declining income needs explanation.
Under 2 years usually isn’t considered stable unless you have previous related employment or extensive specialized training. Under 1 year is rarely approvable (38 CFR 36.4340).
Hyde Funding also offers bank-statement and other non-QM options for self-employed buyers, though these are not VA loans.
Yes, typically with two years of tax returns showing stable or increasing income.
They can lower qualifying income, but depreciation and some non-cash expenses are added back.
Yes. 1099 income is treated as self-employment income.
Talk to Steven: (858) 775-1005 · Free VA consultation · Apply now
Steven Hyde, NMLS #391380. Equal Housing Opportunity. Hyde Funding is not a government agency and is not affiliated with the VA. This is general information, not a loan commitment; terms depend on credit, income, property, and lender approval.