Self-employed? You have options.

Why business owners hear no

Most lenders start with the income on your tax returns. For a business owner, that number is after every legitimate write-off, so a business that brings in plenty can look like a small income on paper.

Add a tax year that is not filed yet, or income that rises and falls through the year, and a standard file gets declined. That does not mean you cannot buy. It usually means the file was sent down the wrong path.

What I look at first

• Your last two years of tax returns, and whether the most recent year is filed.
• How your business income comes in, and which accounts it lands in.
• What you have saved for the down payment and reserves.
• Your credit, and anything worth addressing before you apply.

Those answers decide the program. Sometimes it is a conventional loan on your tax returns, sometimes a bank statement loan, and for rentals it can be a DSCR loan.

Working with your CPA

I do not prepare taxes or give tax advice. What I do is bring your CPA into the conversation, so your tax planning and your mortgage work together instead of against each other.

What to have ready

• Your previous two years of tax returns.
• A copy of your driver’s license.
• A copy of your Social Security card.
• Your two most recent months of bank statements.
• A completed online loan application.

That is the starting pack for most business owners. A bank statement loan needs more statements, and I will tell you exactly which list fits your program. Gather it all in one shot and the file moves in days, not weeks.