The first time I purchased a home was in 2009. At the time, I was a W-2 employee and had no problem getting approved for a mortgage loan. 

In speaking with several self-employed individuals, they have had the hardest time getting approved for a mortgage loan because they are self-employed. Self-employed individuals are asked for an unreasonable amount of documentation and to show proof of income and its source. Short of being given a lie detector test, the self-employed are treated like they are hiding something or lying about something. 

Mortgage lenders say that they are required to use computerized underwriting requirements when processing mortgage applications. Why is this the requirement? 

Obviously, people who have never owned a business are the ones creating these laws. They should receive input from those who are business owners and self-employed. The underwriting and approval process for the self-employed is unfair and needs to be revised.

Also, the two year requirement for income is not reasonable. It should be revised to a minimum of one year. Research shows that many businesses are not even profitable in their first five years of operation. Many businesses are paid based on contracts. This means income may not be coming in monthly, but the income is still coming in intervals, based on the terms of the contracts.