Non-Qualifying Mortgage Calculator


If you're an entrepreneur and have tried getting a mortgage then you've been told...

"You'll need to write off less to qualify for a mortgage"

"Just pay more in taxes"

But does it even make sense to do that? Let's find out.

Here's some background on the why you have to deal with this.

Feel free to scroll down if you just want the calculator.

*Full disclosure: we are not tax professionals so please consult with your CPA for specific advice regarding YOUR situation.

Here's the thing, when a loan officer suggests that you "write off less" or "pay more in taxes" it's usually because you they don't offer the mortgage products that don't require tax records.

It's not their fault!

They are simply going with their instincts, they see a tax record and see that you made very low income and based on that you wouldn't qualify for nearly the amount of mortgage you're looking for. And the cycle continues.

The system is built for W2 employees. So really loan officers just need a few docs from an employee and they can get them a mortgage pretty quickly.

With a business owner, they have to figure out the risk to lending to you and quite frankly the mortgage system isn't built to make it easy to find that.

So it's often easier to tell you to pay more in taxes so that you fit neatly into their system and they can prescribe you a mortgage just as easily as they can for W2 employees.

However, that comes with some significant downsides:

  1. You can't get a mortgage for the next two to three years until your tax records appear to meet their standards.

  2. You may pay more in corporate tax than you would in interest just to get a mortgage with a slightly better rate.

  3. What's to say that after 2-3 years you return with tax records, that the loan officer tells you another reason why you don't qualify.

This doesn't sound like a pleasant experience for anyone and we wouldn't wish it on our worst enemy.

So what can you do?

There are a few mortgage options that you could qualify for without tax records, which have been such a relief for clients.

It's such a great feeling to hear relief in our clients when we are able to take away the stress of getting a mortgage.

The three common options for entrepreneurs that we specialize in are:

  1. Bank Statement Loans
  2. Asset Depletion Loans
  3. Debt Service Coverage Ratio Loans (DSCR)

We also do Jumbo loans for entrepreneurs using bank statements so if you need a large mortgage then you're in good hands.

Terminology

Let's define some of the variables that go into figuring out if we should "pay more in taxes"

Entity Type - They legal structure of your business. Examples: LLC, C-Corp, S-Corp, Sole Proprietorship.

Business Net Profit/Loss - This is the amount of income your business generated before any deductions or "write offs".

Deductions - Reduction of your taxable income, also referred to as "write offs". In the calculator below, just enter in how much you have or intend to deduct to see what your tax liability is.

Tax Liability - What you owe to the IRS.

Mortgage Amount - The amount of money being borrowed.

Interest - The interest rate you are being quoted or expect to pay on a mortgage.

Term - The length of the mortgage. Example, 30 Year Mortgage, 15 Year Mortgage, 40 Year Mortgage.

Interest Payment - Amount of money paid towards the interest accrued.

Monthly Payments - Amount of money you'll be expected to pay monthly for the mortgage.

Taxes vs Interest Calculator for Entrepreneurs
Tax Inputs
Mortgage Inputs

Tax Liability

Mortgage Details

Monthly Amortization Schedule
No. Payment Date Beginning Balance Payment Principal Interest Ending Balance