Hey all,

I’ve made a solid 70-80k gross for a long time now but my write offs have always been very high as I’m self employed making my tax returns not so ideal.

Conventional/FHA/USDA/VA mortgage use tax returns to verify income. So if you never show net income after write-offs, you'll never get approved for one of these loans if you're depending on this self-employed income.

This year I’m set to make about 175k before taxes. I should have enough for a 15 percent down payment on a 425k home by next spring and I’d love to get something purchased as soon as possible.

Bank statement loans need 10%-20% down payment. So this might work. Rates are worse if your down payment is less than 20%

My main question is, after I file in April will one year of making that much as a self employed person be enough to secure a conventional loan?

If you've been self-employed for 5 years, and the business has been registered for over 5 years, then one year of tax returns is enough. So if you have one good year of net income after write-offs, then that would be a good time to try for a conventional mortgage. (Not FHA, FHA needs two years usually)

You will also need to include a profit and loss statement for the current year.

I will have no personal debt by this point as well if that matters.

That always helps too. Not absolutely necessary, but helpful.

I’ve also been told to look into bank statement loans as my monthly deposits are around 14k at the moment. It seems like they aren’t worth it at higher interest rates but is that negligible if you can re finance?

Refinancing is never guaranteed. If you never make a net profit on taxes, you'll never be able to refinance into a conventional loan. (assuming that's your only income)

Very new to this all any help is appreciated.

Thanks!!!!!

Bank statement loans are offered by private lenders who set their own rules. The method of income verification is they take your monthly deposits and apply an expense factor.

Some lenders allow your CPA to write a letter determining the expense factor.

Others apply a flat 50% expense factor.

So if you get $10,000 in monthly deposits in your business, then after a 50% factor, you'll be given $5,000 of qualifying income.

I hope this helps!

Drop more questions if you need.