08/07/2026
Your CPA wants your income DOWN.
Your mortgage lender wants your income UP.
Welcome to being self-employed. š
One of the biggest surprises business owners run into when buying a home:
āBut I make way more money than that.ā
You probably do.
The problem is that traditional mortgage underwriting doesnāt simply look at how much money came into your business.
It looks at qualifying income.
And after deductions, depreciation, expenses and other write-offs, the income on your tax returns can look VERY different from the business you actually operate.
Hereās where it gets interesting. š
Depending on the borrower and loan program, a self-employed buyer may have options that look at things like:
Bank statements.
Profit & Loss statements.
Business cash flow.
Assets.
Rental-property cash flow.
And sometimes the best solution is still a conventional loan; if the tax returns are analyzed correctly.
The lesson?
Donāt assume you canāt qualify because your tax return shows less income than you actually generate.
And if youāre planning to buy in the next 6ā12 months, donāt wait until youāre in escrow to figure this out.
Get the mortgage strategy before you make major tax decisions.
Your CPA handles your tax strategy.
Your mortgage professional should understand how that strategy affects your borrowing power.
Two different jobs.
Both should be part of the conversation.
Self-employed or own a business?
DM me āSELF-EMPLOYEDā and Iāll help you understand what your numbers may look like from a mortgage perspective.
Save this before your next tax appointment.
HomeBuying OrangeCountyRealEstate MortgageEducation NonQM
