# Why traditional underwriting punishes self-employed borrowers 

## Метаданные

- **Канал:** Matt The Mortgage Guy
- **YouTube:** https://www.youtube.com/watch?v=LXT3wsm9-Is
- **Дата:** 10.06.2026
- **Длительность:** 1:35
- **Просмотры:** 271
- **Источник:** https://ekstraktznaniy.ru/video/53158

## Транскрипт

### Segment 1 (00:00 - 01:00) []

why traditional underwriting punishes self-employed borrowers. And again, I don't make the rules. I don't agree with it, but this is just how it works. If you didn't see any of my other self-employed videos, let me just give you a recap of traditional loans. Traditional underwriting uses your tax returns, specifically the net income line after deductions, and the lender is going to average last 2 years. Asterisk, in some cases you can just do 1 year, but the reason why this is an issue for self-employed borrowers is because you have a self-employed business where you have $500,000 in revenue, of course you have write-offs. Of course you write off the company car. a ton of different things in the business. And then, as a business owner, your bottom line on your tax return shows you make $60,000 a year. And for business owners, it's a brutal hit, right? $5,000 a month in income? You ain't buying nothing in California. And you've got a great business, but you've also got a great CPA, writing off vehicles, equipment, employee costs, home office, retirement contributions, the works, right? And so your tax return shows a lower number. That traditional lender can only use that net income number, right? It's going to qualify you for $350,000 in home buying power, and you're looking at a million-dollar home. And, you know, the business took home 400,000 of actual cash because some of those deductions were non-cash, like the or were business related, right? So you can afford the more expensive home. Bank statement and P& L loans were built for this type of borrower. They look at your business's real cash flow instead of your taxable income.