HOUSTON – Rich Bonn of Habayit Home Loans joins Houston Life to explain what self‑employed buyers should do before filing taxes so deductions don’t derail mortgage options.
Why tax deductions can hurt your mortgage chances
If you run your own business, the tax deductions that lower what you owe can also lower the income lenders see on your tax returns. Traditional mortgage underwriting is built around pay stubs and W‑2s; a Schedule C full of legitimate write‑offs can make it look like you earned almost nothing — even when your bank account tells a different story. That can lead to the frustrating advice to “pay more taxes” and try again next year — a delay that costs time and, often, thousands of dollars.
Talk to a mortgage pro before you file
Decisions made before you file can affect which loan programs you can access. Before you hit “submit,” meet with your lender or mortgage expert so they can recommend strategies tailored to your business: timing year‑end income, documenting owner’s draws versus salary, or shifting deductible expenses when appropriate. Keep clean bookkeeping, profit‑and‑loss statements, bank statements and 1099s organized — these are often used to show true cash flow when W‑2s aren’t available.
A practical four‑step plan for self‑employed buyers
Rich Bonn of Habayit Home Loans recommends this simple F.A.S.T. method for self‑employed buyers:
- Find the right loan — non‑traditional options (bank‑statement loans, or certain non‑QM products) can assess cash flow differently.
- Apply for strategic pre‑approval — get guidance on how your filing choices will affect qualifying income.
- Secure the right home — choose a property that fits your pre‑approval and timeline.
- Take the keys — close confidently, knowing your lender already factored in your business realities.
Plan ahead - and sign up for Rich’s webinar, March 26, 2026, at 7 p.m. CT, for deeper Q&A and examples.
Register today at www.savewithrich.com.