If you’re self-employed or you’re an 1099 independent contractor, we have a solution for you. Many accountants will reduce your income by as many expenses as they can find. That’s helpful on saving you money on taxes, but it’s not really helpful in getting you qualified for a mortgage.
Here’s the solution. We have lenders that instead of looking at your tax returns, will instead take a look at your bank statements. The formula is simple. They’ll either look at 12 months or 24 months of your bank statements. They’ll add up all those deposits and then divide them by the amount of months. If it’s in your personal account, they’ll use that figure as your income. If it’s in your business account, they’ll reduce that number by half because they understand that you’re going to have expenses to run your business. The one thing that you have to make sure of though is that you don’t skip any months. You have to have a consistent 12 or 24 months of deposits.
It’s as simple as that. Using this program, you’ll have a higher income and more purchasing power when looking to buy a home. Let us know if we can help.