Self-Employed Mortgage | Sole Proprietor Income, How Do Lenders Calculate It? [Video]

Mortgage mastery for the self-employed. Calculating sole proprietorship income from Schedule C.
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In this video:
00:00 – Introduction
01:18 – How to tell if you’re self-employed (according to a lender)
02:41 – Documentation: what do we need from you?
03:09 – Documentation: tax returns
03:44 – Documentation: tax extension forms
04:08 – Documentation: profit & loss statement
04:54 – Documentation: balance sheet
05:13 – Let’s look at your Schedule C
05:41 – Why don’t lenders use gross income for loan qualifying?
06:04 – How tax write-offs affect your loan qualifying income
06:31 – Lenders make adjustments to the income on your tax return
06:58 – Why do lenders make these adjustments?
07:34 – How do tax rules come into play?
08:23 – Let’s talk about the adjustments
08:39 – Adjustments for conventional conforming loans
09:04 – Non-cash flow expenses that we can add back into your income
09:34 – The Magic 4: Depletion
10:22 – The Magic 4: Amortization
11:22 – The Magic 4: Depreciation
13:17 – The Magic 4: Business use of home
14:03 – Deduct from your income
15:17 – Meals and entertainment on your Schedule C
16:01 – Non-recurring income
16:14 – Continuance: what does that mean for income?
17:37 – Non-recurring expenses
18:54 – FHA loan rules for self-employed income
20:01 – Va loan rules for self-employed income
20:43 – A weird thing about VA loan rules
21:42 – USDA loan rules for self-employed income
21:52 Jumbo Loans and self-employed income
22:43 – How lenders treat business debts
25:30 – Case study: Let’s calculate income for a sole proprietor!

Self-employed mortgage playlist:
https://www.youtube.com/playlist?list=PLK5a62WXWP1z1HsJRwQLp5WaWReBisyQE

Self-employed mortgage principals:
https://youtu.be/QTRoVN5v-gQ

Fannie Mae form 1084:
https://singlefamily.fanniemae.com/media/7746/display

Julee Felsman, SVP of Mortgage Lending NMLS 120831
Guaranteed Rate Inc NMLS 2611 Equal Housing Lender.
www.nmlsconsumeraccess.org
www.rate.com/licensing
www.rate.com/privacy

Branch address: 1300 SE Stark St Ste 111, Portland, OR 97214
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