06/22/2026
Your borrower runs a real business with strong deposits and real reserves. Then the tax returns hit the jumbo box, and the write-offs their CPA spent years optimizing become the reason the income will not qualify. The borrower checks every real box. The jumbo doc requirements are what get in the way. Here is a real scenario and how TLS handles it.
Your borrower runs a real business with strong deposits and real reserves. Then the tax returns hit the jumbo box, and the write-offs their CPA spent years optimizing become the reason the income will not qualify. The borrower checks every real box. The jumbo doc requirements are what get in the way. Here is a real scenario and how TLS handles it.
THE SCENARIO
- Self-employed owner buying a $2.2M primary residence
- $1,650,000 loan at 75% LTV, 740 FICO
- Tax return AGI shows $180K, but business deposits average $42K a month over 24 months
- Strong credit and deep reserves, with a Schedule C the jumbo box will not approve
HOW TLS UNDERWRITES IT (Flex NQM Income, 24-month bank statement)
- Qualify on the deposits the business actually generates rather than the adjusted figure on line 31
- Expense factor applied by industry and headcount (service business, 1 to 5 employees runs 30%)
- Qualifying income is eligible deposits reduced by that expense factor, averaged over the 24 months
- Needs a 2+ year business history, 0x30x24 mortgage history, and reserves that fit the profile
- No tax returns and no IRS transcripts on this path
- Up to $3M in loan amount, up to 90% LTV through $1.5M
When the loan is over the conforming limit, do not assume jumbo is the only road. Price it in the TPO portal, or send the scenario to your TLS AE and we will structure it with you.
Not partnered with TLS yet? Start at tlstpo.com.
