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David A. Krebs is a licensed mortgage broker with over 15 years of experience offering loan options beyond traditional banks

First-Time Homebuyer Qualifies Based on Self-Prepared P&L Statement

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Qualify based on P&L instead of tax returns

Our client just graduated college and was looking to purchase his first home. However, he was turned down by a bank because his debt-to-income ratio (DTI) was too high. As a new architect just starting out, his tax returns did not show enough income to satisfy the bank’s criteria. Additionally, he did not have a lot of credit history and only had a few active tradelines showing on his credit report.

We placed him in an innovative loan program that allows self-employed borrowers to show their income through profit-and-loss statements, instead of tax returns. A nice feature of this program is that the P&L does not have to be prepared by a CPA; rather, it can be self-prepared.

Regarding his credit history, we beefed it up by adding his timely car insurance payments as a tradeline on his credit report.

To further help bolster his qualifications, the loan program also allowed 100% of the closing costs and down payment to come from a gift from a family member. To that end, he was able to use a gift from his mother to qualify.

Finally, the property he was purchasing was a condominium, so we had to submit a condo questionnaire to the lender to ensure the financial health of the association was sound. The lender questioned one of the items regarding delinquent assessments. But, we were able to use our expertise regarding condo loans to demonstrate the condo was warrantable.

Our client is now the proud owner of a beautiful condominium in a desirable and convenient neighborhood just outside Miami.

Are you looking to purchase or refinance a condominium?  We can help.  Contact us today to discuss your scenario.


Posted on

May 20, 2021

Miami mortgage broker

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