For business owners whose tax returns, after legitimate write-offs, understate the cash the business brings in. Bank-statement and profit-and-loss loans document income another way: deposits over a period, or a profit-and-loss statement, in place of tax returns. These aren't "no-doc" loans. The lender still has to verify the borrower can repay; the documentation is different, not absent. The other two lessons cover what a pre-approval looks at and how underwriting verifies income in the way the program requires.
- Self-employedBank statements instead of tax returnsRead · try
Bank statements instead of tax returns
How self-employed borrowers can document income when tax returns, after write-offs, understate what the business brings in.
- BuyingWhat a pre-approval is, and what it isn'tRead · try
What a pre-approval is, and what it isn't
What gets reviewed, what the letter means, and what it doesn't promise.
- BasicsUnderwriting, demystifiedRead · try
Underwriting, demystified
What happens to your file after you apply, and why the lender asks for more documents.
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