Loans: Get the best mortgage for you

Self Employed borrowers are often crammed into a Stated Income loans. Since these types of loans (Stated Income, No Documentation, No Ratio loans) are riskier from the lender’s perspective the borrower pays a premium to obtain them. With current market conditions lending guidelines have tightened. You are now very limited in what you can buy and how much equity you can refinance out of your primary residence or investment properties if using a limited documentation loan.

The reason these loans are used is because lending institutions rarely have employees who are familiar with tax returns and unless income is spelled out for them on a W2 they run to expensive loan products. There is a good chance that the interest rate you are paying on your mortgage is 3/8ths to 5/8ths higher than what it should be if your tax returns were used to determine your income. On a $300,000 mortgage the difference between 6% and 6.625% is a cost of $44,000 in interest on a 30yr mortgage.

We specialize in working with business owners who have multiple companies or have for example tax free income from Government contracts. We have qualified people who show $20,000 in income for a $700,000 Apartment complex purchase. Your tax returns are prepared using deductions like depreciation for example. Since depreciation is a paper loss that income is allowed to be added back into your qualifying income when applying for a mortgage.

There are many other factors that we consider while helping you with your mortgage. Our goal is to help you create wealth using other people’s money. Leveraging money strategically can help you achieve your goals at an accelerated pace. We will work closely with your tax preparer and your financial planner to ensure that a mortgage will fit into your financial plan.