Your tax returns
Built for: Returns that already support the payment.
Usually the cleanest path, with the best pricing.
Watch for: One big write-off year can pull your average down.
Self-employed
Your tax returns don't tell the whole story. That's a solvable problem.
You did the smart thing on your taxes. Then a lender looked at those same returns and said you don't make enough. That's a paperwork problem, not a you problem, and there's usually a way through.
Why this happens
What you earn isn't what a lender counts
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What you bring in
The money that actually lands in your account from your business.
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What your return shows
What's left after the write-offs that lowered your tax bill.
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What most lenders count
Usually that lower number, averaged over your last two years.
You didn't do anything wrong. You just need a lender that looks at the right number.
Your options
Four ways to show what you really make
What to have ready
The paperwork, and one tip before tax season
Documents
- Your last two years of tax returns, personal and business
- A year-to-date profit-and-loss
- A few months of business and personal bank statements
- A paper trail for any large deposits
- A business license or CPA letter, if you have one
Your list depends on which path fits. I'll narrow it to yours.
A tip
Talk to me before you file
Planning to buy in the next year or two? Talk to me before you file your taxes. How you write things off this year can change what you qualify for next year. I don't give tax advice, but I can show you how a lender will read your return, so you and your CPA can decide with real numbers.
Keep reading
Where to look next
Questions I get a lot
Straight answers
Can I get a mortgage if I'm self-employed and write a lot off?
Yes. Write-offs lower the income most conventional loans count, which is why good tax planning can make qualifying harder. If your returns still support the payment, a conventional loan is usually the cleanest path. If they don't, some lenders look at your bank deposits, your 1099s, a profit-and-loss, or your assets instead. I'll tell you which one fits after I see your file.
Who can do a bank statement loan in South Carolina?
I can. I'm a mortgage broker in Greenville, licensed in South Carolina, North Carolina, Michigan, and Florida (NMLS 2302900). Several of the lenders I work with offer bank statement loans, and each one reads deposits a little differently, which is why shopping matters. It usually costs more than a conventional loan, so when both are on the table, I'll show you them side by side.
How long do I need to be self-employed to get a mortgage?
Usually two years, but not always. Some lenders will work with a shorter history if you did the same kind of work before you went out on your own. It depends on the program, so tell me your timeline and I'll tell you what's realistic.
Do I have to use a bank statement loan if I'm self-employed?
No. If your returns support the payment, a conventional loan is usually cleaner and costs less. A bank statement loan is a tool for when they don't.
Should I write off less so I can qualify?
That's a question for your CPA, not me. What I can do is show you how a lender will read your returns either way, so you and your CPA can make the call with real numbers in front of you.
Got a question that isn't here?
Text me. Every file is different, and I'll tell you what applies to yours.
Text (980) 987-1299 →
Joe CalecaSenior Loan Officer, Mpire FinancialNMLS 2302900
You built something real. Let's make your file show it.