Who this is about

This client is a self-employed general contractor who had been running his own business for years.

Like many self-employed buyers, he had strong cash flow and money saved for a down payment, but his tax returns told a different story.

The problem

Because of business write-offs, his taxable income looked much lower than what he actually earned.

Three different lenders reviewed his tax returns and turned him down. Even though he could afford the home, he was unable to qualify using traditional income documentation.

By the time he came to us, he was frustrated and close to giving up.

Why traditional loans did not work

Most conventional and government loans rely heavily on tax returns.

For self-employed borrowers, lenders compare reported income on tax returns to the proposed mortgage payment and existing debts.

With heavy write-offs, that income can appear too low, even when real cash flow is strong.

The solution: a bank statement loan

We used a bank statement loan, which is commonly used by self-employed buyers.

Instead of relying on tax returns, the lender reviewed 12 to 24 months of business bank statements. They analyzed the deposits, averaged them out, and used that average as the borrower’s monthly qualifying income.

This approach reflected how the business actually performed, not just how it looked on paper after deductions.

Buying the home: Glendora

Using the bank statement loan, the client was able to qualify and bought a beautiful home in the city of Glendora.

His savings covered the down payment, and the income was documented in a way that finally matched reality.

Why this story matters

Many self-employed buyers think they are stuck because of write-offs.

This case shows that being turned down does not always mean no. It often means the wrong loan structure was used.

As he shared in his review, “Armando Novelo is the best mortgage guy for self-employed buyers.”

Today, he owns the home he wanted and has a mortgage that reflects how his business truly operates.

At a Glance

Buyer type: Self-employed general contractor

Initial obstacle: Heavy tax write-offs lowered qualifying income

Lenders turned down: Three

Strategy used: Bank statement loan

Income method: 12 to 24 months of bank statement deposits averaged

Down payment: Saved funds

City: Glendora, California

Outcome: Homeownership achieved despite prior denials

Related Resources

· Bank Statement Loans