Your self-employed and business-owner clients often earn more than their tax returns show. I know how lenders read returns, add-backs and business income, and when the returns don’t work, I use programs that qualify on bank statements or assets instead.
How I help your clients
- Returns read the way an underwriter will. Depreciation and other add-backs, Schedule C, S corporation and partnership income, and how a lower latest year is treated.
- Planning before your client applies. How the timing of a filing or an extension changes what a lender can count, so the return used supports the loan.
- Other ways to qualify when returns understate income: bank statement, profit and loss and asset-based programs.
- Only the paperwork that’s needed. If a lender asks for a CPA letter, I tell you exactly what it must say and nothing more.
Situations I see often
- A client wrote off heavily and now qualifies for far less than they can afford.
- A business owner on extension needs to buy before the return is filed.
- Income dropped in the latest year after a one-time expense.
- A client owns several businesses and the lender can’t follow how the income flows.
Programs and tools
- Self-employed loans
- Bank statement income calculator
- Self-employed income calculator
- Jumbo loans
- DSCR investor loans
- Cash-out refinance
Questions
Do lenders need a CPA letter?
Some programs ask for one, for example to confirm business ownership or the expense factor on a bank statement loan. I’ll tell you exactly what the lender needs and keep the request to that.
Should my client file or extend before applying?
It depends on how the two years compare. Send me both and I’ll show you how a lender would read each option.
Will you advise my client on taxes?
No. Tax advice stays with you; I tell you how a lender will read the numbers.
