For loans closing after June 15, 2017, if the business exists for 5 years or more at closing then we can use 1 Year tax returns for Personal and Business.
From a loan officer perspective, this is huge. Our economy is much better than in in2015 and getting better. It is expected that the 2016 profits and salaries be mostly better than in 2015. Before we would have to use the average of 2 years.
This change means more buying power for self-employed, small businesses, and medium and large businesses also.