Forum Archive

I’m almost afraid to unleash chum into the water by asking, but with a recent post about refinancing, I have a general concern about freelancers and mortgages.

I have two properties and have over 20% equity in both of them. I’ve also been self-employed (S-corp) for almost 10 years.

Each year, my accountant has (legally) done his magic to reduce my taxable income via the expenses involved investment property and my small production company.

I truly feel like since I left corporate America and went on my own, I have no idea how much I make…of course the company has a gross, but between the S-corp flow through, the expenses as deductions etc…I just focus on the fact that the bills are paid, there’s food on the table and I can travel and save a bit, because the AGI is so low.

But all that flies in the face of qualifying for a refi.

So, how can the (growing) legion of freelancers refi in this climate? Do you really have to take the hit on taxable income one year to qualify?