Find Out if You Qualify
Self employed Loan Programs For The State of Colorado
You are self-employed if you work for yourself and set your own hours you can qualify for bank statement loans Colorado. Your work schedule will usually revolve around your customers or clients so that you can make an income.
Tax write-offs are a great benefit for self-employed people who have documented income and expenses. A trusted CPA or Tax Accountant in Denver, Boulder, and other Colorado cities may be able to save you thousands of dollars by using all legal avenues to claim business expenses.
Most self-employed individuals are sole proprietors (1099 independent contractors) and must file Schedule C along with their tax returns. This IRS form allows you to report any business expense. It will also show a profit and loss. S-Corp owners must file the 1120S. Self-employed persons can benefit from the deduction of every business expense, which could significantly lower their tax bill each year.
When it comes to getting a mortgage, the lender will look at the applicant’s “net” income. This number will play a significant role in getting your loan approved. Your net income might not be sufficient to get a mortgage if you haven’t included all legitimate expenses in Schedule C or 1120S.
If you are the owner or an independent contractor, getting approved for a mortgage requires that the mortgage originator you deal with has some knowledge in this field. It is also a good idea to be familiar with the questions that may be asked. Here is a brief overview.
1. The length of your self-employment. Your most recent tax return must show that you were self-employed for the past 12 months. Tip We have a great solution if your most recent tax returns show a higher net income than in the previous year.
2.) 2.) How to increase your income
You may not be aware of the fact that you can make more on your loan application if you have certain expenses.
We can help you qualify by adding to your net profit.
Non-recurring, one-time expenses
The deduction for the home office
And a few more.
If that fails to help, you might consider paying more taxes and fewer deductions in order to be eligible for a loan. Refinance or buying a home does not have to be delayed if you are looking for a mortgage or self-employed.
Alternative options are non-QM loan programs.
We offer attractive options for self-employed borrowers to calculate documented income in another way that does not require tax returns or IRS tax transcript forms.
Bank Statement Loan Programs For Colorado
This program will review your 12-24 months bank statements (personal and business checking accounts). Log in to your account, get your 12 or 24 most recent.pdf statements, and submit them to a loan originator.
The minimum requirements for a bank statement mortgage loan in Colorado
To qualify, you’ll need to have the following documents as of March 28, 2022:
- – A copy of your business license, and/or a letter from a tax preparer confirming that you have been self-employed for the past 2 years.
- Owner-occupied homes require a minimum of 10 percent downpayment
- For investment properties and vacation homes, a 20% down payment is required.
- Refinances of 15% or more equity is possible
- 660 – Tri-merge FICO credit score
Eligible Properties: Single-family homes, condos, and 2-4 units that can be used as primary, secondary, or investment properties.
We recommend that you make a minimum of 35% downpayment or equity to get the best interest rates.
How does income get calculated?
Your bank deposits are work-based. An expense factor is an industry-standard or a licensed tax preparer is used to calculate your income.
As long as you can access your online banking, it doesn’t matter what Colorado bank or big national bank you have an account with. A customer service representative can email you if you do not have an online bank account. We have dealt with many different challenges.
You might be eligible for a new program if you only provide the last two years’ 1099 statements.
The Profit & Loss Loan
This program can be used in conjunction with your CPA to provide a Profit & Loss statement (P&L), for your business.
- 1st option – P&L for the most recent year with a P&L for the current year (maximum 75% financing up to $2.5M with 720 FICO scores).
- 2nd Option – Most recent P&L for the last two years with YTD P&L (maximum 70% financing up to $1.5M with 720 FICO scores).
Additional requirements include:
- The minimum amount of ownership required by the borrower is 25%.
- The business must be in operation for at least two years.
- No bank statements, no tax returns, no IRS tax transcripts
Asset Amortization for bank statement loans near Colorado
Your total eligible liquid assets (savings and money market, CDs), Brokerage, IRA, or 401k accounts) will determine your monthly income. There are many formulas. The lender will calculate your monthly income using an income formula if you have $750,000 liquid. Exemplified by the division of your $750,000 liquid assets by 84 months, which yields $8,928 in qualifying monthly income. Rates are approximately.250-.375% more than bank statement mortgages.
Program for Investment Property Cash Flow in Colorado
We will examine the rental income and market rent of the property. The property’s rental income monthly must be sufficient to cover the new mortgage payment, taxes, and insurance. It is not necessary to have any income from employment. Eligible Properties: Condos, townhomes, single-family homes, and condos are all eligible (with a higher down payment requirement). Log cabins and agriculturally zoned properties, as well as homes with lots larger than 50 acres, are not eligible.