Mortgages for Self-Employed Homebuyers

Prepare the Income Record

For traditional loan programs, lenders commonly request personal and business tax returns, schedules, 1099s, profit-and-loss statements and business bank records. They review the type of business, history and whether income is likely to continue. The documentation depends on the loan and circumstances.

• Gather filed returns and all schedules.
• Keep business and personal funds clearly documented.
• Discuss unusual one-time income or expenses with Adam.

Why Revenue and Qualifying Income Differ

Business revenue is reduced by expenses; tax-return analysis may also make permitted adjustments under the relevant guidelines. A strong sales year or large deposit does not automatically translate into the same amount of qualifying income. Ask for an early review before making an offer.

Explore Alternative Income Documentation

CCM publishes bank statement, 1099 and professionally prepared profit-and-loss loan options. These may provide another way to evaluate business income when a tax-return-based approach does not fit. Ask Adam to compare the documentation, payment, down payment and reserves for your situation.

Plan Cash and Timing

Closing funds from a business account may require extra documentation and an assessment of business liquidity. If you expect to change your business structure or make a major purchase, discuss it before applying.

Put the Guide to Work