Self employed 1.5 years...cant get conventional financing?

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I am beginner investor looking to get my first rental under my belt. I spoke to a lender today about getting a conventional loan since I am looking to purchase a rental property out of state. I was told I would need 2 recent yrs of tax returns if I am self employed, which I kind of expected. I guess I have to wait until the end of the year. I'll seek other loan options, but isn't that higher rates and more downpayment is needed? 

If you have good credit and other stuff, the automated underwriting system (most current version) might just come back with:

"If ________________'s self-employed income is being used for qualifying purposes, the income may be supported by personal and business tax returns covering the most recent one-year period (including all tax schedules), provided the tax returns reflect at least 12 months of self-employment income and the Cash Flow Analysis (Form 1084) or equivalent has been completed."

Only way to run the AUS is to put in a full application. It might call for 2 years if you are putting 25% down, and 1 year if you are putting 30% down, for example. LOs can run it multiple ways, but you are unlikely to find one that'll spend time on that before getting all your docs. Not all lenders offer, some have overlays and will still require 2 years in all cases. I ask for 2 years of tax returns upfront that way if the AUS calls for it, I don't have to go back to the borrower multiple times for stuff I could/should have just collected upfront.