The Card Team

This Week's Focus: Self-Employed Borrowers

Many self-employeds assume they can't qualify for a mortgage because their tax returns don't reflect the income they actually earn. As a result, some delay purchasing a home unnecessarily-- or never reach out to an agent or lender.

QUESTION #1
"I write off everything. Can I still qualify for a mortgage?"

Often, yes. I see this frequently! Many traditional mortgage programs use tax return income, but there are many alternatives today designed specifically for self-employed borrowers. And the rates are very competitive!

QUESTION #2
"How many years do I need to be self-employed?"

Most conventional programs require a two-year history, although there are exceptions depending on the borrower's overall profile and line of work. Five years self-employment is optimal for confirming financing.

QUESTION #3
"My CPA minimizes my taxes. Will that hurt my mortgage approval?"

Sometimes. This is one reason I encourage business owners to discuss major purchase plans with both their CPA and lender before filing returns. A little planning can make a tremendous difference. And sometimes it is a minor tweak that has little or no effect on tax liability.

QUESTION #4
"Can I qualify using bank deposits instead of tax returns?"

Absolutely. Many self-employed borrowers qualify using 12- or 24-month bank statement programs when traditional documentation doesn't accurately reflect their cash flow.

AI Prompt of the Week for Realtors
Copy and paste this prompt into ChatGPT:

"Act as a top-producing Realtor. Create a friendly email to a self-employed business owner explaining why they should speak with a mortgage professional before assuming they cannot qualify for a home loan. The email should be educational, non-salesy, under 250 words, and end with a question that encourages a response."

Have a wonderful weekend!
Karen Card
The Card Team
Helping Veterans, Self-Employed Borrowers, First-Time Buyers, Seniors, and Homeowners Navigate Today's Mortgage Market.

Crazy weekend filled with activity. First —opening day at Dana Point yacht club, then the Angel game and finally the candlelight concert at the Newport Hyatt.

Lots of fun at last weekends cinco de Mayo dinghy round up in the harbor at Dana Point. This event is hosted annually by Dana Point yacht club.

Great weekend with the DPYC crew in Ensenada for the N2E race.

Fun Sunday at the musical theatre west to watch In the Heights with my partner and daughter! Fabulous dancing and singing!

Buy before you sell
"We love our house. We just love the idea of our next house more — but we can't buy until we sell."
Sound familiar? That's exactly what bridge financing is designed to solve. Tap into your current home's equity, make a strong non-contingent offer, and move on your timeline — not the market's.

Karen Card
American Pacific Mortgage · NMLS #235218
714-290-6940 · [email protected]
DM me or call/text me

Interesting visitor to our greenbelt this week! A great egret! Busy eating lizards….

Only a couple of peeps missing - the spectators!