A bank statement loan is a type of non-QM mortgage that qualifies self-employed borrowers based on 12 or 24 months of bank deposits rather than tax returns. This solves a common problem for self-employed borrowers whose tax returns understate their true income due to legitimate business expenses, deductions, and depreciation that reduce taxable income for…
A DSCR (Debt Service Coverage Ratio) loan is a type of non-QM investment property mortgage that qualifies a borrower based on the property’s rental income rather than the borrower’s personal income. To qualify, each: the property’s expected monthly rent must reasonably cover the mortgage payment plus taxes, insurance, and HOA (with the specific ratio requirement…
If you’re self-employed and you’ve ever tried to buy a home, you probably already know the trap. You have two choices, and both of them stink. You can show a lot of income on your tax returns and pay a fortune in taxes. Or you can let your accountant do their job, deducting every…
