Self-employed borrowers with declining income from 2007 to 2008 may no longer qualify for loans under new underwriting guidelines, as lenders can now choose to only consider income from 2008 rather than averaging multiple years. The solution is to close any loans before April 15, 2008, or work with lenders who will still qualify borrowers based on previous year's tax returns without requiring updated profit and loss statements.

1. Declining Income What your self employed clients need to know about changes to underwriting guidelines.