Obtaining a Mortgage When you’re Self-Employed or have an Untraditional Income

EZ Tax Services has teamed up with Karla Hampton Mortgage at New American Funding, to better serve our clients and our community! Did you know that there are many tax benefits to owning a home? Talk to your tax preparer and see the list below for a quick checklist to help you achieve your goals. You already rock in business, and we can rock that home purchase together!

Obtaining a mortgage while self-employed can be difficult, but it is possible. Many of my clients are unaware of what income is considered qualifying income. This is an excellent time to discuss with your tax preparer-accountant and/or mortgage lender what is considered qualifiable income to the IRS. Your mortgage lender can provide additional information on what is eligible for them. Our accountants are our best team because they can be creative in reducing taxable income, which we appreciate as clients! Unfortunately, the situation is different when it comes to mortgage lending. We can’t tell you what to do with your taxes, but we can tell you the rules.

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Here are a few tips to help you get started

Get Organized

Before you start the process, make sure you have all the paperwork. Part of the process is proving your income. Below are documents that will help you in achieving this.

  • Bank statements
  • Tax Returns – All pages including State tax and Federal
  • W2’s
  • Paystubs
  • K1’s
Traditional Loans

To apply for a traditional loan, you are required to have 2 years of tax returns. There are specific exceptions including 1 year tax returns, depending on Automatic Underwriting approval; an intuitive tool that has Day-1 certainty of loan approval, based on credit and the years the business has been open.

Some other type of loans available include Portfolio loans, Bank Statement only, 1-year tax return loans, and”No doc/No income” loans. However, down payments and interest rates are higher because they are riskier loans.

Certain schedules will be required depending on the type of business you have, such as an LLC or a corporation. Please contact me ahead of time so that I can assist you prior to your mortgage consulting appointment.

Speak with your Mortgage Lender and Tax Preparer

We can go over what lenders are expecting to rely on per loan guideline and program in regard to what is viewed as stable, ongoing and “Qualifiable Income,” vs tax allowable(s).
**Please talk to your tax preparer and let them know that you are trying to buy a home. Tax preparers/accountants they are a wealth of help and essential in your financial evolution and growth.

Lastly, we can examine all of your finances, including debts, credit, and how this may affect your overall financial profile. After our consultation, you will walk away confident, informed, and hyperaware with a game plan in place to execute your home loan purchase!


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About Me

Hi, I’m Karla Hampton – a local lender. I work very hard to provide the best client experience! This has helped me advance in my career by making me one of the highest rated loan consultants in terms of client satisfaction and referrals. Despite my extensive knowledge of many different types of clients and their situations, my self-employed clients and first-time homebuyers are always a pleasure to assist. I’ve frequently discovered that they were misinformed or discouraged by a poor loan consultation, and I believe that everyone deserves to own a home, and I’m here to help you every step of the way.