Estimate only. This is not a loan offer, rate quote, commitment to lend or approval. Lender rules, credit, documentation and the property decide what you may qualify for. Programs vary by borrower, property and investor.
How this estimate works
For a full-documentation mortgage, a lender usually starts from the net profit on your business tax returns, then adds back certain non-cash deductions such as depreciation, depletion and the business use of your home, because they lowered your taxable income without taking cash out of your pocket. The two years are averaged and divided into a monthly figure. If income dropped from one year to the next, the lender may use the lower year or ask for an explanation.
When this number looks too low
Many business owners write off as much as they legally can, which is good for taxes and hard on a mortgage application. If this estimate is far below what you actually take home, an alternative-documentation program that uses bank statements, a profit-and-loss statement or your assets may fit better. Which add-backs apply to you is a question for your tax professional and your loan officer.
A licensed loan officer can review your situation. Programs vary by borrower, property and investor.
Start your application in a few minutes. A licensed loan officer reviews it and follows up with your options.
- Takes a few minutes
- Reviewed by a licensed loan officer
- No obligation to proceed
Prefer to talk first? Call (888) 508-8976. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.
Learn more: Self-Employed Mortgages · All calculators