CPA’s: Your Self Employed Clients Have More Mortgage Options Than Ever
Self Employed Mortgage Solutions are Back!
Until recently, self-employed individuals were required to qualify for a mortgage by using the recent two-year average of the income reported on their tax returns. Since many business owners manage their expenses to limit their tax liability, they unintentionally limit their borrowing power.
As a result, self-employed individuals are forced to decide what is a higher priority - paying lower taxes or qualifying for a home loan.
Today, there are new mortgage loans that use business cash flow as opposed to net income reported on tax returns. Whether it's using bank statements, a letter from you, or just a 6 month P&L; banks today are accepting much more to document income than they were just a few years ago.
These new loans no longer force self employed individuals to pay all cash for their home or adopt unfavorable tax strategies for two years just so they can qualify for a new mortgage.
Contact me today to discuss whether or not these new programs can help your clients qualify for a home AND retain their self employed tax benefits!
Tom Santos I Branch Manager
CA DRE #01175932 NMLS #332212
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