If you are like millions of others today and you run a side hustle, you might need/want to use the money to qualify for a mortgage. Unless it’s something you’ve done long-term though and can prove with your tax returns, traditional financing isn’t an option.
Because most side hustlers take advantage of the tax breaks available to them, many show a loss on their tax returns. This means no loan approval from a traditional lender.
Enter the bank statement loan – the answer to your needs. You don’t have to worry about showing a loss on your tax returns – bank statement loans don’t look at your taxes.
Here’s why you should consider this alternative form of financing for your home.
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It Doesn’t Matter What you Do
You can be a podcaster, social media influencer, or freelancer – it doesn’t matter. As long as you are making money and can prove it, a bank statement loan can work. You just need to prove regular receipt of income. Most lenders take a 12 – 24-month average of your income too.
You Can Take the Tax Breaks you Deserve
If you use traditional financing, you must forgo the typical tax breaks you’d get for running a business. This means you’d pay more taxes just to get a mortgage loan. Instead of doing that to yourself, consider the non-QM loan that will use alternative documentation so you can take your tax breaks AND get the mortgage you need.
You can Work When you Want
You don’t have to prove you work a full-time job or work certain hours. Lenders don’t have to verify your employment with an employer. As long as you have a letter from your CPA stating that you do run the side hustle you stated and that the documents you provided are legit, that’s all lenders need. This gives you the freedom you want in life while still knowing you can get a mortgage loan.
You Don’t Need Perfect Credit
Good credit is best, but it doesn’t have to be perfect. If you had some struggles, especially as you started your business, it won’t hurt your chances of loan approval. As long as you can make up for it by having only a few debts or a large down payment, you’ll still be in good running for the financing you need.
Final Thoughts
Bank statement loans give you a chance to have your cake and eat it too. Whether you work a side hustle as your full-time gig or it’s in addition to your job, a bank statement loan helps you get the financing you need.
You don’t have to worry about showing income on your tax returns or meeting other strict guidelines. Prove you have the income to cover the mortgage payment and your existing debts and are a good risk and you’re on your way to homeownership! If you’d like to learn more about bank statement loans and how they work, contact us today
