For CPAs: when good tax planning makes a client hard to qualify.

The problem you already know

Conventional underwriting starts from taxable income. A client with a healthy business, legitimate write-offs, and a modest bottom line can get declined, or approved for far less than the business supports. That is not a reason to change the tax strategy.

How a bank-statement loan works

• Qualifying income comes from 12 or 24 months of personal or business bank deposits, not the tax return. See how bank statement loans work.
• Business accounts use an expense factor set by the program, or one supported by a letter from you.
• Programs can go up to about $3 million, depending on the file. Pricing is usually higher than conventional because of the documentation. We do not post rates.
• For clients buying rentals, DSCR loans qualify on the property’s rent instead.

What we may ask of you

Some programs ask for a short CPA or tax-preparer letter confirming the business exists and how long the client has been self-employed, or supporting the expense percentage. We tell you exactly what the program needs, and only with your client’s authorization. We do not ask you to project or guarantee income.

Who usually fits

Business owners, 1099 contractors, K-1 earners, and commission earners, often with about two years of self-employment. More in who qualifies for a bank statement loan.

Licensed in CT, NY, NJ, MA, PA, FL, SC, NC, and TX. We fund in-house in CT, FL, SC, and TX, and shop the loan with our investor network in NY, NJ, MA, PA, and NC. We do not pay referral fees. All loans are subject to credit, income, property, and underwriting approval.