For most jumbo lenders a Self-Employed borrower with declining income can become an issue. The concern from underwriting is how much will future declines be and how long will the declines last. Underwriters as most big banks do not like this uncertainty and therefore may decline a file do to it.
Is there any way to get APPROVED with DECLINING SELF-EMPLOYED INCOME for a Jumbo Loan?
Yes there certainly is. I have access to several JUMBO investors who will consider this with a story. Over the years I have gotten many of these approved.
Some things that you may want to prepare are –
- What happened to cause the decline in Self-Employed income?
- Have there been any circumstances that caused it to go up one year and down the next?
- Is the current year P&L showing more income than last years tax returns?
Feel free to Contact Us with your scenario. Be sure to include as many details as possible. We can usually get a pretty good idea just from the scenario but may need to review credit and tax returns to give you a solid answer.