1 Year Tax Return Home Loan
- 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
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.
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.
- 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.