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Many self-employed borrowers have income that varies throughout the year—landscapers, tax preparers, retail businesses, tourism operators, and others with predictable busy and slow seasons. Self-employed mortgage programs can accommodate seasonal patterns with the right approach.

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How Lenders View Seasonal Income

Lenders want to see that seasonal fluctuations are normal for your business type, not signs of instability. They look for:
  • Consistent patterns year over year
  • Strong months that offset weak months
  • Overall annual income that supports the loan
A landscaper earning $25,000/month in summer and $5,000/month in winter is fine—as long as the pattern is predictable.

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Why 24-Month Programs Help

Seasonal businesses often benefit from 24-month bank statement programs: If your application falls during your slow season, a 12-month lookback might understate your income. Two years of statements smooth out the peaks and valleys. The same principle applies to 1099 programs: a two-year average smooths seasonal variation better than a single year.

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Documentation Tips

To strengthen your application:
  • Provide context — A brief letter explaining your business cycle helps underwriters understand the pattern
  • Show consistency — If possible, demonstrate that this year’s pattern matches prior years
  • CPA letter — Your accountant can confirm the seasonal nature of your business and typical annual income

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Timing Your Application

When you apply matters: Apply after strong season — Your most recent months show higher deposits, which may help with 12-month programs. Ensure full cycle coverage — Make sure your statement period captures at least one complete annual cycle to show the full picture.

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Reserve Requirements

Lenders may require additional reserves for seasonal businesses to ensure you can make payments during slow months. Expect 6-12 months PITIA, sometimes more.