We Don’t Let Income On Tax Returns Keep our Self-Employed Borrowers From Qualifying

Jan 10, 2024

Purchasing a second home can be an exciting milestone in one’s life. However, for borrowers with unconventional financial circumstances, securing a loan for their dream home can be a daunting task. In this blog post, we will explore a scenario where our borrower, with a 702 FICO score, was able to overcome financial hurdles and successfully obtain a $2 million loan with a loan-to-value ratio of 70%. Let’s dive into the details!


Our borrower, who has been self-employed for 15 years, faced a challenge when it came to their debt-to-income ratio. Based on the net reported income on their tax return, their debt-to-income ratio stood at a staggering 58%. This high ratio could potentially hinder their chances of securing a loan for their second home.

Non-QM Solution

Fortunately, our borrower was able to take advantage of our non-qm bank statement mortgage product, which offered a unique solution to their financial predicament. Instead of relying solely on the reported income from their tax return, we allowed them to utilize 12 months of bank statement income. This alternative approach proved to be a game-changer for our borrower.


By considering the bank statement income, the borrower’s debt-to-income ratio significantly improved to a more manageable 44%. This positive outcome opened doors for them to secure the $2 million loan they needed to purchase their second home.

Our non-qm bank statement mortgage product, which allowed our borrower to utilize bank statement income instead of relying solely on tax return income, showcased the power of non-QM solutions. Contact us for more info about our bank statement programs. We have a few.