QUALIFY USING BANK STATEMENT ONLY QUESTIONS AND ANSWERS

About Broward County Florida Self Employed Mortgage Lenders

If you’re one of the 1000’s of Florida self-employed workers that write off to much income to qualify for a Florida mortgage? it is now easier than ever to be self-employed get approved for a Florida mortgage if you are self-employed and have sufficient income and payment history you can now qualify for a bank statement only Florida mortgage. Fannie Mae has relaxed some of their guidelines for documenting self-employed income. Even today Florida self-employed mortgage applicants are having trouble betting approve for their Florida dream home.  Here we have provided the much-needed information to help you get approved for a self-employed mortgage loan using bank statements only to document your income and ability to make the Florida mortgage payments.

How Long Must You Be Self Employed in Broward County Florida To Qualify?

Most Florida mortgage lenders that provide self-employed mortgage loans want to see proof of at least 2 years business history. Some Florida self-employed mortgage lenders only require 12 months personal bank statements but still want proof of stability for at least 2 years. For self-employed Florida business owners using business bank statements 24 months business bank statements are required and a Florida profit and loss statement signed by the Florida business. NO Tax Returns Needed!

SELF EMPLOYED BROWARD COUNTY FL MORTGAGE APPLICANTS CAN NOW QUALIFY FOR LESS THAN 2 YEARS SELF EMPLOYED! Here’s more good news for our Self Employed Mortgage Applicants! Self Employed Florida Mortgage Lenders Home Loans, Inc. may be able to approve your self-employed borrowers, even those with a history with less than two years of self-employment.  These applicants may qualify for our Fresh Start, Homeowner’s Access and Premier Access products. When qualifying these borrowers, our underwriters look for: At least two years of previous employment in the same line of work in which the borrower is now self-employed At least one year of employment, plus formal education or training in the same line of work. Proof that the borrower’s income is stable and is expected to continue Substantial compensating factors that address the borrower’s ability to repay.

Broward County Florida Self Employed Income Using Tax Returns Make it Hard To Qualify

A borrower’s income is still probably the single most important factor in qualifying for a Florida mortgage. For traditional Florida mortgage lenders to know what you earn, they will want to see at least the last two-years of a self-employed borrower’s Schedule C from an IRS Form 1040. Schedule C is the tax form that represents the income or loss from your Florida business. If income increases between year one and year two, Florida mortgage lenders will take an average of the two years. However, if the second year’s most recent income is lower than the first year, Florida mortgage lenders are required to use the lower number. With our bank statement only mortgage program this is not an issue because the lender will add u p your most recent 12 or 24 months bank statements and average out your income.

Self Employed Broward County Florida Mortgage Lenders

If you’re going to mortgage your Florida home purchase with traditional financing that is conforming to Fannie Mae and Freddie Mac guidelines you will be required to fully document your self-employment income via adjusted income on your 1040 tax returns. It is standard that  Fannie Mae will want a full 2 years worth of tax returns to document your net income after expenses. For many Florida self-employed mortgage applicants to provide this requirement can be difficult for employed Florida business owners.

If you’re purchasing a new Florida home or refinancing your existing Florida mortgage there is a specific process Florida self-employed must go through to get approved for a Florida mortgage. Under the old guidelines, self-employed works had difficulty qualifying based on proof of income. This happens for a variety of reasons including how a business is structured most importantly how much income you write off as a self-employed Florida mortgage applicant.

Florida self-employed workers have no history of paychecks that can be documented because the employer usually pays the w2 employee expenses. They take may take distributions with no regular amount or frequency making qualifying based on income difficult even with bank statements and tax returns.  If your business is new and you don’t have documented sources of revenue or even two years of federal tax returns this can make qualifying for a traditional mortgage difficult, if not impossible.

If you have a history of paying yourself from your Florida business, Fannie Mae’s guidelines state that your business only needs to have adequate income to support your future distributions. Most Florida mortgage lenders will require documentation that your Florida business is legitimate and stable. This could be provided in the form of your letters of incorporation or the K-1 filing which highlights your percent Florida business ownership.

The underwriting process is still going to be more complicated for Florida self-employed mortgage applicants. Fannie Mae and Freddie Mac have similar processes to verify income from Florida self-employment.These requirements follow the ability to repay guidelines to ensure that you have adequate income from Florida business owners ability to repay the loan. Florida mortgage lenders adhere strictly to these guidelines so that the loans can be sold to Fannie Mae and Freddie Mac.

If you don’t have two years of business tax returns the guidelines you may be able to qualify for a bank statement program using your personal bank statements as an alternative to a conventional mortgage. These types of programs are available from boutique portfolio lenders and offer reasonable rates and fees.

Roadblocks for Broward County FloridaSelf Employed Mortgage Applicants

The most common roadblock Florida self-employed workers face is proving how much your net income is from the business based on tax returns and deductions. Florida self-employed mortgage applicants may have significant cash flow in your business but could be in for a shock when you learn your qualified net income based on tax write-offs and expenses for your business. If you cannot demonstrate sufficient net income from your business it still may be possible to qualify for a bank statement program using income on your personal statements.

Broward County Florida Business Tax Deductions Lower Documented Income

Running a business as a self-employed worker can be very expensive and often comes with significant tax liability. The temptation can be to lower your taxable income with deductions. These deductions include business expenses for things like equipment, expense accounts, and annual depreciation.

Taking business deductions may save you money on your taxes but it could make it more difficult to qualify for a mortgage. As a self-employed worker, you are qualified for a mortgage based on your net income, not gross income for a traditional worker.

Most self-employed business owners claim as many tax deductions as the law allows which significantly lowers your net income and therefore your ability to qualify for self-employed home loans.

Debt to Income Ratio for the Broward County Florida Self Employed

Maintaining a low debt to income ratio is important in qualifying for any mortgage loan. As a self-employed worker, your debt to income ratio is calculated differently from traditional workers.

Your debt ratio is calculated by your average net income from the most recent tax returns along with current year income and expenses. In order to be approved for a self-employment mortgage, your debt-to-income ratio cannot be more than 43 percent.

If you’re considering purchasing a new home or refinancing your existing mortgage you might want to consider taking fewer tax deductions to reduce your debt-to-income rate with the highest possible net income.

Broward Florida Mortgage Documentation Makes a Difference

The loan process you’ll go through as a self-employed business owner is the same as everyone else. Where it gets sticky is providing your income documentation. The more you have to prove that business income is sustainable and able to pay the easier the process becomes to qualify as a self-employed Florida business owner.

Keeping accurate records of income and expenses will make it easier to prove that you are a sustainable business as well as documenting net income which is required for maintaining a favorable debt ratio.

Mortgages for Broward Florida Self Employed Business Owners

Florida Mortgage lenders generally consider self-employed business owners to be higher risk than those who work for a traditional paycheck. Higher risk Self-employed Florida business owners pay more at closing and over the life the loan with higher interest rates. If you’re accepting a higher interest rate when you purchase your Florida home you may be able to lower that rate down the road by demonstrating a reliable payment history and refinancing.

How You Structure Your Broward Florida Business Matters

There are several different ways to be self-employed and underwriters treat them all differently. The most common business structures include sole proprietorship, partnerships, LLCs and S corporations.

Under a sole proprietorship, your business income is reported on schedule c of your tax return. With a partnership profits in the business are split between partners based on their respective percent of ownership. Limited Liability Corporations are considered pass-through entities for tax purposes. S corporations follow strict guidelines for distributions. Depending on how you structure your business you could potentially pay yourself on a w-2 and avoid the hurdles of a self-employed mortgage completely. Your accountant can help you choose the optimal business structure for your company.

No matter how you choose to structure your business there are steps you can take to maximize your income from self-employment and maintain an optimal debt ratio. All of these factors are under you control and are part of maintaining healthy finances as a self-employed worker.

 

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Broward County FL Local Business Links

At broward.county-taxes.com/btexpress. You can file an application for a new business tax receipt and/or change Broward county FL address information on an existing business tax receipt. For more information and assistance, please call 954-831-4000. Fax number: 954-357-5479. Questions can also be mailed to businesstax@broward.org.

The Local Broward County Florida Business Tax (formerly known as Occupational License) is required of any individual or entity choosing to engage in or manage any business, profession or occupation in Broward County Florida unless specifically exempted. When you pay a Local Business Tax, you receive a Local Business Tax Receipt, which is valid for one year, from October 1 through September 30. Tax rates vary, depending on your business classification.
Broward County Florida Renewal notices are mailed to the address on record every year on July 1 to the current, valid Local Business Tax Receipt holder. If you do not renew your Local Business Tax Receipt by September 30, it becomes delinquent. October 1, you will be assessed a penalty if you attempt to renew for the following year.

If you do not receive your Broward County Florida renewal notice, you should contact the Broward County Call Center at 954-831-4000. Fax number: 954-357-5479.

Broward County Florida Taxpayers involved with short-term rentals may be required to pay a Tourist Development Tax. Click here for more information.

Note: You can now print a Broward County Florida business tax receipt after a payment is processed via the account page or the payment confirmation page.

Search Online for a Business Tax Record

Local Broward County Florida Business Tax Exemptions

The following are entitled to an exemption from a business tax receipt fee:

• A Broward County Florida person who is physically disabled, is incapable of manual labor, who uses less than $1,000 of their capital investment (F.S. 205.162) , AND does not have more than one employee or helper in connection with the business or occupation
• A Broward County Florida person 65 years of age or older who uses less than $1,000 of their capital investment (F.S. 205.162) AND does not have any more than one employee or helper in connection with the business or occupation
• A person who is a widow/widower with minor dependent(s), uses less than $1,000 of their capital investment (F.S. 205.162) AND does not have more than one employee or helper in connection with the business or occupation
• A Broward County Florida Veteran of the United States Armed Forces who was honorably discharged upon separation from service, or the spouse or un-remarried surviving spouse of such a veteran (F.S. 205.162) , AND owns a majority interest in a business with fewer than 100 employees
• The spouse of an active duty military servicemember who has relocated to the county or municipality pursuant to a permanent change of station order (F.S. 205.055) AND owns a majority interest in a business with fewer than 100 employees
• A Broward County Florida person who is receiving public assistance as defined in Florida Statute (409.2554) , (F.S. 205.055) AND owns a majority interest in a business with fewer than 100 employees
• A person whose household income is below 130 percent of the federal poverty level based on the current year’s federal poverty guidelines (F.S. 205.055) , as determined by the U.S. Department of Health & Human Services

Broward County Florida Applicants for exemptions must provide proper documentation in order to qualify for the exemption. Please see the business tax forms page for the applications and required documents.

The following are not required to have a Broward County Florida business tax receipt:

Agriculture Mortgage Lenders Broward County FL – exempt per 20.25, Broward County Code of Ordinances

Alcohol Broward County Florida – must contact Florida Department of Business and Professional Regulation Division of Alcohol & Tobacco

Bail Bondsmen Mortgage Lenders Broward County FL– must contact Florida Department of Financial Services Division of Agents and Agent Services

Churches Mortgage Lenders Broward County FL– exempt per 205.191, Florida Statutes

Fish Farms Mortgage Lenders Broward County FL– exempt per 20.25, Broward County Code of Ordinances

Gambling Mortgage Lenders Broward County FL – must contact Florida Department of Business and Professional Regulation Division of Pari-Mutuel Wagering

Gas Stations Mortgage Lenders Broward County FL– must contact Florida Department of Revenue

Home Day Care – however, if the day care is in Unincorporated Broward County, a Certificate of Use must be obtained from Broward County’s Permitting, Licensing and Consumer Protection Division

Insurance Mortgage Lenders Broward County FL– must contact Florida Department of Financial Services Division of Agents and Agent Services

Non-Profit Mortgage Lenders Broward County FL – exempt per 205.192, Florida Statutes

Plant Nursery Mortgage Lenders Broward County FL (If you own the land) – exempt per 20.25, Broward County Code of Ordinances

If you qualify as one of these exemptions, you may contact the Broward County Records, Taxes and Treasury Division at 954-357-6200, fax number 954-357-5483, or download an Application for Local Business Tax Receipt Exemption (PDF).

You should also check with your municipality for other local tax and/or licensing requirements.

Contractor Mortgage Lenders Broward County FL

If your type of business is Contractor, you are state-certified and you have a Local Business Tax Receipt from your home county in Florida, you may do business across the state of Florida without obtaining a county Local Business Tax Receipt. However, even if you meet these requirements, some Broward County cities require contractors to obtain a Broward County Local Business Tax Receipt in order to obtain permits.

If your business is locally certified by your county, you may contact the Broward County Central Examining Board or call 954-765-4400 to see if Broward County can reciprocate another county’s Certificate of Competency. Broward County does not, however, reciprocate Local Business Tax Receipts.

New Business Applications Mortgage Lenders Broward County FL

Check with your municipality before attempting to obtain a Broward County Local Business Tax Receipt, especially if your business is home-based. Local Business Tax Receipts are Check with your municipality before attempting to obtain a Broward County Local Business Tax Receipt, especially if your business is home-based. Local Business Tax Receipts are non-refundable, and your municipality may decline your application, due to zoning or inspection requirements. In addition, your municipality may have other tax or licensing requirements.

New businesses may also present applications for a Broward County Local Business Tax Receipt in person at Broward County Records, Taxes and Treasury Division, Governmental Center Room, 115 S. Andrews Ave. Room A 100, Fort Lauderdale, FL 33301. You may send in a representative if you are unable to come in yourself. We do not accept/process new applications after 4:30 p.m. You can pick up an application form in our office, or you can download an application on this website under formss or here.

Online Applications Mortgage Lenders Broward County FL

Applications can now be submitted via our website at BTExpress. 

Simply click on the “Apply for a new business tax account”

• • There you will find a number of questions, that are designed to determine the specific type of business you are conducting.
  • You will have the option to upload any required documentation.
  • Complete all fields indicated by an asterisk *.
  • List the same valid email in each field, confirmation is required after submission.

Once your application is submitted, you must click the confirmation link in the email for your application to be sent to the Tax Collector’s office for approval. Once your application is approved, you will be notified by e-mail. Click the link in the email to access your account so you may pay online (if applicable).

You can now print a business tax receipt after a payment is processed via the account page or the payment confirmation page.

A Local Business Tax Receipt is required for each location you operate your business from, and one for each type of business you conduct.

If you are using a DBA, you must also file a Fictitious Name Disclaimer. This ensures that the name of your business will not infringe upon other copyrights. Filing for a fictitious name is done through the Florida Department of State. Applications are available online at www.sunbiz.org, or you may pick up a copy at the Information Desk in the lobby of the Broward County Governmental Center, 115 S. Andrews Ave., Fort Lauderdale.

• • • If your business is located in Unincorporated Broward County, a Broward County Certificate of Use is required. To identify if your business is located in Unincorporated Broward, please click this link http://bcgis.maps.arcgis.com/apps/Viewer/index.html?appid=bf6cda659fe1457c9970cbc2b3399728. Apply for a Certificate of Use from Broward County’s Permitting, Licensing and Consumer Protection Division, Building Services Section, 1 N. University Drive, Plantation, or call 954-765-4400. If your business is located in Unincorporated Broward County, you must have a Certificate of Use before you apply for a Local Business Tax Receipt.
    • There are certain types of businesses that are required to show a state license, registration or other certification to obtain or renew a Local Business Tax Receipt.
    • When you pay your Local Business Tax, you will be required to:
      • Submit your Social Security number or Federal Identification number
      • Depending on the nature of your business, you may also be required to submit proof of active permits and certifications from other state or county agencies before you renew or are issued a Local Business Tax Receipt
      • If the business location is in the unincorporated area of Broward County, you will need zoning approval and a Certificate of Use from the County Code and Zoning Enforcement Division.

Renewals Mortgage Lenders Broward County FL

You can renew by mail or in person at:

Broward County Tax Collector
Records, Taxes and Treasury Division
Broward County Governmental Center, Room A-100
115 S. Andrews Ave.
Fort Lauderdale, FL 33301

You can also renew your Local Business Tax Receipt online on the Broward County  webpage TaxsSys Search  (Note: phone number and email are required), UNLESS you are one of the following types of businesses, which, according to 20.45, Broward County Code of Ordinances, are required to submit current proof of certification annually. In that case, your payments must be submitted by mail or in person, with a copy of the current certification.

10% Down Stated Income Palm Beach Mortgage Lenders

No Tax Return Broward Mortgage Lenders	Occupation
180-189C	Contractor Mortgage Lenders Broward County FL
276	Bakery/Ice Cream Mortgage Lenders Broward County FL
277C	Auto Paint/Body Mortgage Lenders Broward County FL
290	Pawnbroker Mortgage Lenders Broward County FL
322C	Auto Repair Mortgage Lenders Broward County FL
324C	Pest Control Mortgage Lenders Broward County FL
326C	Moving /Limo Mortgage Lenders Broward County FL
328C	Travel Agency Mortgage Lenders Broward County FL
329C	Specialty Contractor Mortgage Lenders Broward County FL
330	Convenience Store Mortgage Lenders Broward County FL
370	Store on Wheels Mortgage Lenders Broward County FL
376C	Telemarketing Mortgage Lenders Broward County FL
381/381/384/386	Vending Machines Mortgage Lenders Broward County FL
400	Health Club Mortgage Lenders Broward County FL
409C	Ballroom Piercing/Spa/Tattoo Mortgage Lenders Broward County FL

You can now print a business tax receipt after a payment is processed via the account page or the payment confirmation page.

Changes in Mortgage Lenders Broward County FL Business Name, Location or Ownership

You must transfer your Local Business Tax Receipt anytime you move your business to a new location, change your business name or change business ownership. Per 205.033(2), Florida Statutes, the transfer fee is 10 percent of the base fee, not less than $3 or more than $25. There is no fee for a change in mailing address only.

• • • If there is a change in business ownership and the new owner is an exempt business, or in the business category Individual Professional, the Local Business Tax cannot be transferred without an Affidavit to Transfer Broward County Local Business Tax Receipt located on the forms page on this website or here is required.
    • The new owner is required to obtain all regulatory or required documents, and pay required fees.
    • If your occupation is regulated by the Department of Professional Regulations, State of Florida, Consumer Affairs Division or any Board or Commission, you must present an updated copy of your active State certification, registration or City Business Tax Receipt before your Broward County Local Business Tax Receipt may be transferred.

Need More Information?

Welcome to Broward County’s Self Employment Application Process!

Your opportunity to make a difference and join our TEAM begins here!

Check Our Frequently Asked Questions
Email: businesstax@broward.org

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