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Common mortgage questions.
Educational answers only. Final eligibility is subject to credit, income, property, program, and underwriting approval.
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Yes, some programs may allow eligible self-employed clients to be reviewed using 12 months of business or personal bank statements instead of traditional tax return income. The deposits, expense factor, credit profile, property type, reserves, and loan purpose all matter.
Common mistakes
Assuming every deposit counts as income; moving money right before applying; not separating business and personal deposits; waiting until after a bank denial to organize documents.
When to call Mike
Call Mike when your tax returns do not reflect your actual cash flow or when a bank told you your income was too hard to use.
A 24-month bank statement review may provide a fuller picture of income trends for self-employed borrowers. It can be helpful when income varies by season or when the most recent 12 months do not tell the complete story.
Common mistakes
Using inconsistent accounts; failing to explain large deposits; not having clean statements; assuming write-offs will not matter in other parts of the review.
When to call Mike
Call Mike before applying so the right statement period and documentation strategy can be reviewed.
Potentially. 1099 income can sometimes be evaluated through traditional documentation, 1099 history, bank statements, or alternative documentation depending on the program and your overall profile.
Common mistakes
Assuming 1099 equals W-2 income; ignoring unreimbursed expenses; not documenting work history; not preparing bank deposits.
When to call Mike
Call Mike if your income is strong but your tax return or 1099 structure confused a bank.
Many borrowers may be able to buy with less than 20% down depending on loan program, credit, property type, occupancy, and eligibility. Conventional, FHA, VA, USDA, doctor, and other programs may offer different paths.
Common mistakes
Waiting to save 20% when another option may exist; not understanding mortgage insurance; focusing only on rate instead of total strategy.
When to call Mike
Call Mike if you want to compare down payment options before choosing a loan path.
Down payment assistance may include grants, forgivable second mortgages, deferred-payment assistance, or other programs that help eligible buyers reduce upfront cash needs. Availability depends on location, income limits, program rules, and lender guidelines.
Common mistakes
Assuming every buyer qualifies; ignoring income limits; not checking property eligibility; waiting until after writing an offer.
When to call Mike
Call Mike early so assistance options can be reviewed before you shop for homes.
Gift funds may be allowed on certain loan programs when properly documented. The source, relationship, gift letter, transfer record, and loan type all matter.
Common mistakes
Depositing cash without documentation; using undocumented transfers; forgetting the gift letter; changing funds last minute.
When to call Mike
Call Mike before moving money so the gift can be documented correctly.
Possibly. A refinance only makes sense when the new loan improves your situation enough to justify the costs and timing. Rate, payment, loan term, closing costs, equity, and future plans all matter.
Common mistakes
Refinancing only because the rate is lower; ignoring break-even time; rolling costs in without understanding the total impact.
When to call Mike
Call Mike if you want a side-by-side refinance comparison.
A cash-out refinance replaces your current mortgage with a new mortgage and allows you to access available equity as cash, subject to program limits and approval.
Common mistakes
Comparing only payment; not considering HELOC alternatives; taking cash out without a clear plan; ignoring debt consolidation risks.
When to call Mike
Call Mike if you are comparing cash-out refinance vs HELOC.
A HELOC is a line of credit secured by available home equity. It can provide flexible access to funds for renovation, debt consolidation, reserves, business capital, or investment opportunities, subject to approval.
Common mistakes
Treating a HELOC like free money; ignoring variable payment risk; not comparing draw period and repayment terms.
When to call Mike
Call Mike if you want to review whether a HELOC or refinance is the better fit.
HELOC availability for investment properties depends on current program options, equity, property type, credit, occupancy, and lender guidelines. It may be more limited than a primary residence HELOC.
Common mistakes
Assuming investment HELOC rules match primary residence rules; not documenting rental income; underestimating reserve requirements.
When to call Mike
Call Mike if you have rental equity and want to review available options.
A DSCR loan is commonly used for investment properties and focuses heavily on the property cash flow rather than only the borrower’s personal income. DSCR generally compares rental income to the property payment.
Common mistakes
Assuming every rental qualifies; ignoring taxes, insurance, HOA, vacancies, or rent documentation; overestimating short-term rental income.
When to call Mike
Call Mike if you are buying or refinancing rental property and want to compare DSCR options.
Some investor and commercial programs may allow LLC ownership, depending on program rules, entity documents, guarantor requirements, and property type.
Common mistakes
Creating the LLC after the loan strategy is set; using incomplete operating agreements; not understanding recourse/guarantee requirements.
When to call Mike
Call Mike before putting an offer in under an LLC so structure can be reviewed.
Commercial financing may be available for certain property types such as mixed-use, multifamily, retail, office, industrial, or other income-producing properties, subject to program availability.
Common mistakes
Assuming commercial loans are underwritten like home loans; not preparing rent rolls, leases, P&L, or property financials.
When to call Mike
Call Mike when the property is business or investment focused and traditional residential lending may not fit.
Mixed-use financing may apply when a property includes both residential and commercial space. The percentage of each use, income, leases, zoning, and property condition can affect the path.
Common mistakes
Not checking zoning; ignoring lease terms; assuming residential programs will accept commercial space.
When to call Mike
Call Mike if a property has storefront, office, or other commercial space attached.
A jumbo loan is typically used when the loan amount exceeds standard conforming limits. Jumbo reviews can involve stricter income, asset, reserve, and credit requirements.
Common mistakes
Waiting to document reserves; moving assets around; assuming a bank decline means no jumbo option exists.
When to call Mike
Call Mike if your purchase price or loan amount is above standard conventional limits.
Doctor loan programs may help eligible physicians or medical professionals with higher financing options and potentially reduced mortgage insurance requirements, depending on program availability and qualifications.
Common mistakes
Assuming all medical professionals qualify; not documenting employment contract or start date; ignoring student loan treatment.
When to call Mike
Call Mike if you are a physician or medical professional buying a home.
A reverse mortgage may allow eligible older homeowners to access home equity without a traditional monthly mortgage payment, subject to age, equity, counseling, property, and program requirements.
Common mistakes
Not understanding obligations for taxes, insurance, occupancy, and property maintenance; not involving family early when appropriate.
When to call Mike
Call Mike if you want an educational review of whether a reverse mortgage should be considered.
FHA loans may provide flexible credit and down payment options for eligible borrowers. The property, credit profile, debt-to-income, and FHA guidelines all matter.
Common mistakes
Assuming FHA is only for first-time buyers; ignoring property condition; not understanding mortgage insurance.
When to call Mike
Call Mike if you want to compare FHA vs conventional options.
VA loans may offer eligible veterans, active-duty service members, and certain surviving spouses financing with powerful benefits, subject to entitlement, eligibility, property, and approval.
Common mistakes
Not checking Certificate of Eligibility early; misunderstanding funding fee; assuming VA is slower or weaker in offers.
When to call Mike
Call Mike if you are eligible for VA benefits and want a purchase or refinance strategy.
Possibly, depending on discharge date, loan type, re-established credit, income, assets, and program rules. Some traditional programs have waiting periods, while alternative options may differ.
Common mistakes
Applying before knowing the waiting period; not rebuilding credit; failing to document the discharge.
When to call Mike
Call Mike if you want to understand possible timelines after bankruptcy.
Possibly, depending on timing, loan program, credit recovery, documentation, and current financial profile. Different programs can have different waiting periods.
Common mistakes
Assuming you must wait forever; not knowing the recorded foreclosure date; failing to rebuild credit and reserves.
When to call Mike
Call Mike if you want a realistic timeline after foreclosure.
Not necessarily. A bank decline may mean your scenario did not fit that bank’s guidelines, overlays, income calculation, property rules, or risk appetite. Another program may be worth reviewing.
Common mistakes
Giving up after one decline; applying randomly at multiple lenders; not understanding the exact reason for denial.
When to call Mike
Call Mike for a structured second-look review before assuming the answer is final.
Banks often rely heavily on tax-return income. Self-employed borrowers may show lower taxable income because of legitimate business deductions, which can reduce qualifying income under traditional rules.
Common mistakes
Assuming deposits equal qualifying income; not preparing P&L or statements; not understanding expense factors.
When to call Mike
Call Mike if your business income is strong but your tax returns do not show it clearly.
Bonus income may count when it is documented, consistent, and likely to continue, subject to program and underwriting rules. History and employer documentation are important.
Common mistakes
Assuming one recent bonus counts automatically; not documenting two-year history when required; not separating base and variable pay.
When to call Mike
Call Mike if your income includes bonus, commission, overtime, or variable compensation.
RSU income may be considered under certain programs when there is a history of vesting, sufficient documentation, and evidence of continuance. Rules vary by program.
Common mistakes
Counting unvested shares as income; ignoring stock price volatility; not documenting vesting history.
When to call Mike
Call Mike if RSUs are a major part of your compensation.
Renovation loans may finance both the purchase/refinance and eligible improvements. Program type, contractor requirements, scope of work, and appraisal process matter.
Common mistakes
Starting work before approval; not using approved contractors; underestimating timelines or reserves.
When to call Mike
Call Mike before starting repairs or writing an offer on a property needing work.
Start with a strategy review, not just a payment estimate. Review credit, income, assets, down payment, target payment, loan options, and timeline before touring homes.
Common mistakes
Shopping before prequalification; moving money around; opening new credit; guessing the budget.
When to call Mike
Call Mike before house hunting so your offer strategy is stronger.