Business Owners & Bank Statement Loans

Running a business is hard. Getting a mortgage shouldn’t be.

Self-Employed Tax Advantages vs Mortgage Qualification

Business owners have access to tax deductions that employees do not have. This advantage can bring down your income “on paper” which is great for paying less in taxes. When it comes to buying a home, most loan options look at your tax returns to calculate your qualifying income. Sometimes these deductions reduce the amount homebuyers can qualify for.

Common Solution: Bank Statement Loans

Instead of using your tax returns, you can qualify with 12-24 months of bank statements. For business owners this usually leads to qualifying for a larger loan and being able to purchase higher priced homes. The deposits in bank statements paint a much more accurate picture of your business income and don’t let tax deductions hurt your ability to qualify. Not all lenders or banks offer bank statement loans. If you are self-employed or own a business be sure to work with a mortgage broker who will have options to all mortgage types.