Business Owners feeling Frustrated?

As many of you know, some may be feeling the frustration of being a smart business owner? Seriously, by being a smart business owner you are hurting your chances of securing a home loan, a loan amount you truly qualify for to purchase a home or refinance a home loan? How frustrating?  Truely successful business owners reinvest profits to grow a business. This mantra, or repetitive commitment, often means the appearance of lower personal income on a tax return.

Tax Returns may understate actual income.

Yes, tax returns “frequently” understate the actual income of self-employed business owners due to allowable deductions.

These multiple allowable adjustments the self-employed worker applies for calculating transportation and communication such as, vehicles, gas, cell phones, computers, all investments the average non-self-employed worker endures, I might add, makes securing a mortgage difficult for many of us who are self-employed, as our income appears lower than our true income.

Bottom line, conventional lenders rely on the tax returns and the AGI, adjusted gross income for eligibility of a specific home loan and the ability to repay.  And an even more doubling down issue is- they average the past two years, which can result in an even lower reflection of one’s true income to determine eligibility for the desired home loan value.

Self-employment issues becoming increasingly relevant to access home equity

As self-employment becomes even more second nature during our age of innovation, these issues are becoming increasingly relevant for aspiring homeowners and those seeking to access home equity.

This challenge is affecting an increasing number of our population and Good Friend Mortgage is tackling the home loan challenges confronting our generation of self-employed workers.  

How are we breaking though the tax return barriers? What other loan products exist beyond conventional lending?

For many business owners and self-employed individuals, the path to homeownership or refinancing can be daunting when conventional mortgage processes hinge on extensive tax returns and rigid income documentation.

Good Friend Mortgage understands these unique challenges and offers a suite of alternative financing solutions, designed to empower future homeowners and entrepreneurs to understand—and maximize—their buying power.

Like a true friend, Good Friend Mortgage stands by clients throughout the journey, ensuring that every lending vehicle accommodates their goals, circumstances, and dreams.

Beyond the Typical: Alternative Income Verification

Yes, say “Good-Bye” to providing years of tax returns, a roadblock for many whose financial realities vary. Good Friend Mortgage breaks through these barriers by considering a diverse range of qualifying documents:

• Bank Statement Programs: For those who may not have tax returns that accurately reflect their income, Good Friend Mortgage can evaluate the past 12 or 24 months of bank statement history. Clients may choose between personal or business accounts, allowing for flexibility and authenticity in documenting income streams.

• Profit and Loss Summaries: When employment gaps or transitions make bank statements unavailable, a well-prepared profit and loss summary can serve as a snapshot of business performance, offering another route for qualification.

• 1099 Income Options: Self-employed professionals or contractors can present a one-year 1099 form, allowing Good Friend Mortgage to assess income based on actual earnings, rather than solely on tax filings.

• Asset-Based Calculations: For those with significant assets but unconventional income, asset depletion or asset-based lending approaches provide an innovative solution. By analyzing liquid assets, Good Friend Mortgage determines borrowing capacity in a way that reflects true financial strength.

Tailored Solutions for Unique Circumstances

The heart of Good Friend Mortgage’s service lies in its personalized approach. Each client’s financial story is unique, and the team works diligently to weigh all potential applications:

• Evaluating multiple documentation methods to find the most advantageous qualifying income.

• Offering guidance during employment gaps, career transitions, or periods of financial change.

• Providing clarity and transparency throughout the pre-approval process, ensuring that clients understand their options and the criteria used.

Staying by Your Side: The Good Friend Promise

Navigating the mortgage process can be complex, but Good Friend Mortgage believes that no one should do it alone. Like a steadfast companion, their team remains by each client’s side from the initial inquiry to closing—and beyond:

• Accommodating all vehicles necessary for securing the optimal home loan, whether the client’s goal is first-time homeownership or leveraging equity through refinancing.

• Adapting to changing needs and circumstances, adjusting strategies as life evolves.

• Making a commitment to transparency, communication, and advocacy at every step.

Making Home Happen

In conclusion, homeownership and financial empowerment are closer than many realize—especially with a partner who truly understands the nuances of self-employment and entrepreneurship.

Good Friend Mortgage’s alternative financing solutions are more than just lending options; they are pathways to possibility, designed with flexibility, compassion, and expertise.

Whether you’re purchasing a first home, seeking to unlock the equity in your current property, or simply exploring your buying power, Good Friend Mortgage is here to make home happen. Like a good friend, we listen, guide, and walk beside you—transforming challenges into opportunities on the road to your next chapter.