tax returns: Tax Returns Aren't Needed for an Investor Cash Flow Mortgage
- 07/28/22 11:03 AM
"Mr. Petrowsky,Your name was given to me by my real estate agent. I am in the process of buying a mixed-use property, 6 apartments and a 1st floor commercial space. The negotiated price is $482,000 and I would like to put 25% down but could do more if necessary. Even though I am purchasing the property as an investment, my plan is to move my computer repair business to the property. I am currently working out of our home, but we just don’t have enough space. The property is ideal.The concern that I have is my business tax returns just don’t … (3 comments)
Hi Joe, Happy Holidays! I'd like to look into doing a refi on both rental properties as soon as I get my 2016 taxes done. My debt to income should be considerably better. Should we get it going now? Regards, Mike
For self-employed borrowers that could not make their debt ratio work to get a mortgage in 2016 and the income numbers will be better with the 2016 returns, then waiting for the returns to be completed is the right way to handle getting a mortgage accomplished in the New Year.
Anyone in the mortgage business will cringe when someone says, I run a cash business or I get paid in cash or I pay my bills in cash. The cash economy is alive and well in each and every country in the world and no different in the US.
Two years ago Tony came to me for a mortgage and I couldn’t help him at the time. He owns a pizza restaurant and showed very little income on this tax return, even though he was driving a new Lexus and substantial savings. At the time … (30 comments)
In the last few years, obtaining mortgages for clients that own numerous properties has been a challenge. Most of the time tax returns have offered the biggest challenge. It just seems like most of these referrals come from other lenders.
Most lenders have guidelines that will not do a mortgage for anyone that owns more than 4 properties. We are fortunate that we have a number of lenders that will do mortgages for folks that own 10 properties.
Creative accounting, and I don’t mean that in a bad … (10 comments)
How about $1,000 per month payable to IRS, as a payment plan to pay back income tax? No matter how many times you ask, are there any other monthly obligations, that are not on the credit report and the answer is “NO”.
When you explain that the 4506 T form, that gives the lender the right to get a copy of their tax returns? When you ask for bank statements and they don’t show you a checking account that shows the payments. How does someone … (42 comments)
tax returns: “When Mortgage Clients Don’t Tell the Truth”
- 06/16/13 12:00 AM
“When Mortgage Clients Don’t Tell the Truth” From time to time, during the prequalification process, folks misrepresent stuff, like income, especially self-employed income, length of time on the job, monies available for down payment and closing costs. There are many more, but these are my most common. A Realtor referred a client, indicating that he had lots of money and wanted to buy a $315,000 house. I get suspicious when being told that someone has a lot of money. This is a self-employed import/exporter. Upon speaking to him, it didn’t take me long to figure out, this … (22 comments)
I took a mortgage application last week and the clients wanted to know why I needed so much information? My answer was, that I want to shorten the turnaround time. Her response was, you must be kidding?
I went on to explain how the process works today and what it takes to shorten the time period. It is important to take an application that is totally complete, with all information needed and nothing left out. Also, extremely important is all the backup information.
"Mr. Petrowsky,Your name was given to me by my real estate agent. I am in the process of buying a mixed-use property, 6 apartments and a 1st floor commercial space. The negotiated price is $482,000 and I would like to put 25% down but could do more if necessary. Even though I am purchasing the property as an investment, my plan is to move my computer repair business to the property. I am currently working out of our home, but we just don’t have enough space. The property is ideal.The concern that I have is my business tax returns just don’t … (3 comments)
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