CLIENT STORY: Denied On A $1.2M Mortgage (Despite Making $280K+)
A client called me frustrated after getting denied for a mortgage on a $1.2M home.
Good credit.
Strong savings.
Successful business.
Real money coming in every month.
But the loan was denied.
He kept saying:
“I don’t understand… I make great money.”
When I reviewed the file, the issue became obvious almost immediately.
His accountant had actually done a very good job.
Over the years they had legally minimized taxable income through write-offs, depreciation, business expenses, and smart tax planning.
The problem?
His tax returns showed about $47,000 in taxable income.
But his actual business deposits were closer to $280,000 annually.
That’s the disconnect a lot of self-employed borrowers don’t realize until it’s too late.
Traditional mortgage underwriting looks primarily at taxable income after deductions, not necessarily what is actually flowing through the business account.
So on paper, this successful business owner looked like he barely made enough to qualify.
Instead of fighting the tax returns, we structured the loan differently using a bank statement program.
We used 12 months of business deposits to calculate income instead.
His qualifying income came in around $224,000.
We closed on the home about 6 weeks later.
I see versions of this scenario all the time with:
The lesson is not “stop writing things off.”
The lesson is:
Build your financing strategy BEFORE you file taxes or apply for a mortgage.
The right tax strategy and the right financing strategy should work together, not against each other.
Talk to me early so we can structure your options properly BEFORE you apply.
If you’re self-employed and planning to buy, refinance, or invest now or over the next 12–24 months, it’s worth having a conversation early so you understand your options before you apply.
There are often more solutions available than people realize.
Message me if you want me to walk through your situation with you.
Some products may not be available in all states. Credit and collateral are subject to approval. This is not a commitment to lend. Programs, rates, terms, and conditions are subject to change without notice. Terms and conditions apply. All rights reserved. America’s Mortgage Solutions NMLS#2009420 – AMS.Money/Mortgage | Christian Penner NMLS# 368289 | 561-373-0987
Read from source: “America’s Mortgage Solutions (AMS)”
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