Self-Employed and Denied a Mortgage?
Tax write-offs lower your taxable income, and lenders qualify you on the number after the write-offs. That is why good earners get a no. There are other ways to qualify.
Why self-employed buyers get denied
Standard loans average two years of net income from your tax returns. Write-offs, business losses and a down year can shrink that number even when your bank account tells a different story. A lender that only runs standard guidelines will turn you down.
Options I look at
- Bank statement loans use your deposits to calculate income
- 1099 and profit and loss programs for contractors and owners
- Add-backs for items like depreciation that a lender may count back as income
- Waiting for a stronger tax year if it makes the numbers work
- A co-borrower with W-2 income
- DSCR loans if the purchase is an investment property
What I need to review
- Two years of tax returns
- 12 to 24 months of business and personal bank statements
- A year-to-date profit and loss if you have one
- Business license or proof you have been self-employed for a period of time
Programs and requirements vary by lender. I cannot promise approval, but I will find the best fit. See self-employed loans and told no on a mortgage.
Common questions
How long do I need to be self-employed?
Many programs want about two years. Some accept less with a strong history in the same field.
Do bank statement loans cost more?
They often price differently than standard loans because of the added flexibility. I will show you the numbers.
Can I use my business bank account?
Many programs allow it, with an expense factor applied. I will explain how it works for your type of business.
Told no somewhere else? Call me.
I can’t promise a yes, but I’ll look at every option. Call or text, or meet in person.