After years of hard work, Jim, a self-employed borrower, wished to purchase a $2 million second home. Jim had the down payment for this new home, but his tax returns did not reflect his true income due to tax write-offs for his business.
Challenge
Jim needed to secure a loan for his new home without having to prove his income via a tax return.
Solution
We consulted with Jim to find a unique solution that would fit his circumstance.
- Review & Consult: We looked at Jim’s tax returns and then reviewed his bank statement.
- Identify Loan: After consultation, a bank statement loan was identified as the ideal solution. These loans are best for when you're self-employed and have a large tax deductions.
- Prove Income: We were able to use the cash flow into Jim’s business account for the most recent 12 months and utilize that cash flow as income for qualification.
Outcome
Jim was not only able to leverage the cash flow from his business to purchase the property he was looking for, but he was also able to secure a 30-year fixed-rate mortgage with no prepayment penalty.