Self-Employed Borrowers
The hardest clients to work for are the self-employed.
If you are self-employed, I will need two years of tax returns and the last six months of bank statements. I will need your business plan. I will need an explanation as to why your income went down and what is happening to turn that around.
If you are self-employed, you must run your income through your business bank account. Try to get paid by check, and keep copies of the checks. If you get paid in green cash, deposit the cash into your business bank account. You have to prove you have enough income to pay your mortgage and your basic bills.
You may have gotten into your bad loan on a stated income basis, but you cannot get a modification on a stated basis. The lender will insist on seeing your bank statements.
The bank will also want to see your profit and loss statement for the year to date, and it is with the profit and loss that we have some flexibility. The bank will accept an unaudited profit and loss statement. It does not have to come from your accountant either. You cannot over-report your income, but you can under-report your expenses in order to show a cash flow.
Call me at 425-771-1110. Fax me at 425-776-8081. E-mail me by clicking here.