Thomas Martin Staff asked 4 years ago
Self-employed borrowers often write off as much income as possible to avoid paying taxes. In order to qualify for conventional mortgage banks require borrowers to averages 2 years adjusted gross income after expenses. Most business owners maximize their expenses to the point where this is not enough money to qualify for a mortgage. Most savvy business owners see the advantage of paying a slightly higher tax deductible interest rate instead claiming all of their income for 2 full years in a row to qualify for a conventional bank loan.
