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1 Year Tax Return Home Loan

Tax Return Home Loan
Self–Employed Borrowers
  • 75% LTV to $1,000,000
  • Fico score 680
  • Owner occupied
  • Income DTI 43%
  • 5/1 ARM
  • 6-12 Months reserve
  • 3 months bank statements
  • Business license
  • Us citizen and permanent residents
  • Business phone must be verified via 411 or internet
  • CPA letter verifying business ownership
Benefits of the Home Loan with Only 1 Year Tax Returns

Use the most recent Filed Tax Return to Qualify
If you are a self-employed borrower who earned much more in the recent year there is no need to average the previous year when you made less income.

2015 Income is $85,000
2016 income is $115,000

Approval is dependent on findings from Freddie Mac’s automated underwriting system which analyzes the loan amount, loan-to-value and debt to income ratios along with the borrower’s FICO credit scores, liquid assets, and other associated criteria. If you are self-employed, and have been declined elsewhere, this may be a great option.

Qualify for Mortgage with 1 Year Tax Returns

Traditionally, mortgage lenders have required two years federal income tax returns in securing a mortgage for purchasing or refinancing real estate.

There’s been changes to the way mortgage lenders underwrite mortgage loans. Borrower may now get a mortgage with just one year of federal tax returns subject to approval.

  • Street address of property and legal description.
  • Distance of structure from property lines and other buildings.
  • Height and number of stories of each structure.
  • Number of parking spaces.
Benefits of the Home Loan with Only 1 Year Tax Returns
  • Recent Bankruptcy
  • Recent Foreclosure or Short sale
  • Low credit score
  • Low liquid reserves

This situation applies for income that increases resulting from a promotion or raise, but more commonly we see qualification issues pertaining to self-employment, rental property. Consider these examples:

Situation 1: You are self-employed. Your business survived the recession, but your bottom line shrunk. As the economy has improved, your income has finally made significant, sustainable strides. Only problem: this growth only happened in the past YEAR.

Situation 2: Part of your income is derived from almond trees. After 10 years, your trees went dormant. You spent FOUR years cultivating a new crop, and last year you finally started to see almond sales spring back.

Situation 3: Part of your income comes from a rental property. After a years’ worth of renovations, you are again able to rent your property out – and for a higher monthly rent.

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