Can I get a mortgage with write-offs on my taxes?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yes, but heavy write-offs lower the net income lenders see on your returns, which can shrink your approval. The fix is an alternative-documentation loan that ignores returns.
Bank statement, 1099, and P&L programs qualify you on gross deposits or receipts instead of taxable net. We'll choose the method that reflects your real earning power despite the write-offs.
Write-offs cut qualifying income
You can, but heavy write-offs lower the net income lenders use on a standard loan. Deductions that save you at tax time also shrink the income you can qualify with.
Underwriters add back some non-cash deductions, like depreciation, but many write-offs still reduce your figure.
Loans that ignore write-offs
A bank statement loan qualifies you on deposits and a 1099 loan on gross earnings, so your write-offs do not hurt your borrowing power. These often let self-employed buyers borrow much more.
Do not let smart tax planning block your home. Reach out and we will find the loan that looks past your write-offs.