October 18


Against All Odds: Mortgage Approval for a Self-Employed Client with Low Declared Income

By Paul J Rocha

October 18, 2022

Home » Blog » Mortgage Success Stories » Against All Odds: Mortgage Approval for a Self-Employed Client with Low Declared Income

The best success stories are the ones referred to us by previous clients. ​This story is one of those cases. Lou is a very successful self employed landscaper with a good accountant.

​Good accountant, bad for mortgage

Lou works hard and wants to keep as much of his income as possible. As such Lou hired one of his cities top notch accountants to help maximize his write-offs and keep as much of his income as possible.

While maximizing your write-offs might be great tax planning, it’s not so great when it comes time to apply for a mortgage. If you’re a self employed or commissioned individual banks want to average your last 2 years declared income. If you’re declared income is low because you maximized your write-offs, you might not qualify for the mortgage you need at a traditional bank.

We Listen to Lou’s story

We met with Lou and went over his financial status and business activities. After reviewing Lou’s bank statements we determined that his gross revenue (based on deposits into his business account) was substantially higher than his declared income. We also realized that many of Lou’s current jobs were from repeat clients. In fact Lou has clients that have been using his services for over 20 years.​

We offer mortgage solutions

While traditional banks might have a hard time approving mortgages for self employed individuals who declare little income, I have lenders that look beyond your tax filings to determine your real income. In Lou’s case we were able to find several lenders that would accept Lou’s deposit’s in his business account as a guide for his true income.

Lou’s mortgage was approved in no time, and now Lou is enjoying his country home with his family and horses.

Self Employed?

Share your story with us and let’s discuss your self employed mortgage options.

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