Quick answer: On an $800,000 Littleton 80123 home with 20% down at 7.24%, principal and interest run about $4,362 a month. If you own 25% or more of a business, lenders following Fannie Mae generally want 2 years of tax returns, or 1 year once the business is 5 years old.
By Katerina Veteskova, Colorado real estate broker license FA.100082955, eXp Realty, LLC
Business owners in Littleton often earn well and still hit snags at the lender. The reason is usually paperwork and how business earnings show up on a tax return, not the amount.
This guide uses an $800,000 purchase in the 80123 zipcode with $160,000 down and a $640,000 30-year fixed loan.
Who counts as self-employed for a Littleton mortgage?
Anyone with a 25% or greater ownership interest in a business.
The Fannie Mae self-employed guidelines say the lender must weigh the stability of your earnings, the location and nature of the business, demand for what it sells, its financial strength and its ability to keep paying you enough to cover the loan.
How many years of tax returns will the lender want?
Generally two years, and sometimes one.
Fannie Mae generally requires a two-year history of prior earnings. A lender may accept one year of personal and business returns when the business has existed for five years and you have held 25% or more of it for five consecutive years. Signed returns or IRS-issued transcripts for the most recent two years both work.
What if I have been self-employed less than two years?
It can still work if your latest returns show a full year from the business.
Your most recent signed personal and business returns need to show 12 months of earnings from the current business. The file also needs proof that you earned the same or more before, in the same field or in a role with similar duties.
Littleton listings from $700K for business owners
Email me new Littleton listings from $700,000 as they come on the market, so I can line up my tax returns before I write an offer.
What does the $640,000 loan cost each month?
About $4,362 in principal and interest at 7.24%.
The rate comes from the Freddie Mac weekly 30-year fixed average dated October 29, 2026. To keep principal and interest alone under a 45% debt ratio, the Fannie Mae manual ceiling with strong credit and reserves, you would need about $116,309 a year in qualifying earnings. Taxes, insurance and other debts raise that. These figures are my own arithmetic, for illustration only.
Why can my tax return number be lower than what I earn?
Because the lender works from what the business pays you and what it can keep paying.
Fannie Mae notes that partnership and S corporation earnings on a personal Form 1040 may not have actually been paid out to you. The lender runs a cash flow analysis to find the amount you can rely on while keeping the business viable. Large write-offs that cut your taxes can also cut your qualifying figure.
Can I use business funds for the down payment?
Yes, if you are an owner on the account and it is verified.
The Fannie Mae rules on depository accounts allow business assets for the down payment, closing costs and reserves when you are listed as an owner of the account. If you also use that business to qualify, the lender looks at whether pulling the cash hurts the business.
Should you apply now or wait for another tax year?
It depends on your history and how your latest return reads.
Apply now if:
- You have two signed years of returns showing steady or rising business earnings
- Your business is five or more years old and you have owned 25% or more the whole time
- Your cash for the down payment is already seasoned in verified accounts
Wait for the next return if:
- You have less than 12 months of self-employment on your latest return
- Your last year dropped sharply from the year before
- A new return will show a full year at a higher level
Is $800,000 a realistic price in Littleton 80123?
It is above the zipcode median and buys the upper tier.
Redfin put the 80123 median sale price at about $580K for the three months ending September 2026, with homes selling after about 31 days at 98.2% of list. Listings at this price are in the Littleton homes from $700K, Littleton 80123 homes from $700K and Littleton $700K to $1M searches, and larger homes are in Littleton homes from $1.2M.
Where else can an $800,000 budget go near Littleton?
To the west, compare Morrison homes from $700K, Morrison 80465 homes from $700K and Morrison $700K to $1M.
To the north, look at Lakewood homes from $700K and Lakewood $700K to $1M, or Golden homes from $700K and Golden $700K to $1M. A broader Front Range $700K to $1M search adds other suburbs.
Broker view: "With self-employed buyers, I suggest a call with the lender before we tour, with both tax years in hand. It saves us from falling for a house the numbers will not support." - Katerina Veteskova, eXp Realty, LLC
What this guide does not cover: bank statement or non-QM loans, how a lender averages or adjusts specific tax lines, FHA, VA and jumbo rules, tax planning, property tax, homeowners insurance and HOA or metro district amounts. This is not tax or financial advice, and your lender decides your qualifying figure.
Sources: Freddie Mac PMMS survey, 7.24% average 30-year fixed as of October 29, 2026. Fannie Mae Selling Guide B3-3.2-01 on self-employed borrowers, B3-4.2-02 on depository accounts and B3-6-02 on debt ratios, all checked November 4, 2026. Redfin 80123 zipcode data for the three months ending September 2026. Payment figures are my own math, for illustration only.
Self-employed and shopping Littleton near $800,000? Call or text 720-646-4685, or request a tour.
Frequently asked questions
When does Fannie Mae treat me as self-employed?
When you have a 25% or greater ownership interest in a business.
Can I get a mortgage with less than two years self-employed?
Possibly. Fannie Mae allows it when your latest signed personal and business returns show a full 12 months from the current business and you have a history of similar earnings in the same field or a similar role.
When is one year of tax returns enough?
When the business has existed for five years and you have owned 25% or more of it for those five consecutive years, along with the other conditions in the Fannie Mae guide.
Can IRS transcripts replace my tax returns?
Yes. Fannie Mae lets lenders use IRS-issued transcripts of your individual and business returns for the most recent two years, as long as they are complete, legible and include all schedules.
Katerina Veteskova is a Colorado real estate broker (license FA.100082955) with eXp Realty, LLC. Call or text 720-646-4685, or request a tour.