How To Qualify Self-Employed Income For A Mortgage

Mike Comerford & Jeff Trudel, Loan Officers with Premier Mortgage Lending, talk about how to qualify self-employed income. In this video they show samples how to breakdown Schedule C and S-Corp income in order to qualify a business owner for a mortgage. Please comment below with any questions!
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This content was produced and edited by Premier Mortgage Lending 🎥

Index:
00:00 - Start
02:11 - Schedule C Income
06:07 - Averaging Income
07:24 - Seasonal Variable Income
08:15 - Additional Schedule C Income Information
11:01 - Tax Payment Plan
12:24 - S-Corp Income
17:44 - If A Business Is Showing A Loss
20:00 - Passive Income / Non-Passive Income

[danfoxx]

This video is good I just wish you could show on the forms what your talking about so I can see and compare.

[par]

Thank you guys. This video is exactly what I needed as I am going through this process currently. I’m worried that I’ll put the wrong thing on my taxes and not get approved. When this happens do people go back and amend their taxes? Or would you just advise to come up with a larger down payment or improve credit?

[PearlEnergyy]

Why do you subtract out the meals if they’re already an expense listed on line 24b which once subtracted you get your line 31. Why are you subtracting it twice? It is because you only deduct half in the beginning?

[belindaochoa]

I wish they could have shown the return to see what they were looking at, and blurred out the applicant’s name.

[danielledisessa]

How does traditional retirement contributions impact line 31 for a Schedule C 1040? I contribute a lot to retirement which is supposed to reduce my taxable income which isn't good for applying for a mortgage

[being]

What if I got a new contract that I couldn't complete because of injury.? Does that count.?

[MuhammadAli-vwjw]

Lets say a business has been around for 2 years but the owner only took Schedule K distributions the first year and then the second year, they have a w2 and schedule K income from their S Corp. Can you use that one w2 as part of the second year income?

[SO]

Great video! If I’ve been self employed for 9yrs, what is the likelihood that I only have to use 1 years worth of tax returns ?

[jorgefernandez]

Great video, though I was under the impression that to qualify with only one year of taxes you also had to have over 720 credit score aside of the 5 years history of self employment.

[redciroc]

How to prove sole proprietorship income to qualify for mortage???

[avalonmcleod]

Great video. What about line 13. Can the depreciation be added to the net profit as more income.

[carloscartagenaMLO]

can i get a copy of the income calculator spreadsheet ?

[angelarohr]

The title says how to qualify. This is obviously a how to quantify video. NOT the same question at all!

[therealsouthernbelles]

What if they are w2 and self employed i.e. 1099?