In Episode 161 of the Teaching Tax Flow Podcast, hosts Chris Picciurro, CPA, and John Tripolsky welcome back special guest Parker Borofsky of Wealth Builders Mortgage Group to discuss one of the most common financial challenges entrepreneurs face — qualifying for a mortgage while self-employed.

Parker brings a lender’s perspective to this crucial topic, sharing real-world insights into how lenders view self-employment income, tax returns, and documentation when approving home loans. Together, the trio breaks down how tax planning decisions, deductions, and entity structures directly impact loan qualification, often in unexpected ways.

This episode offers invaluable advice for self-employed individuals, small business owners, and real estate investors looking to position themselves for mortgage success without sacrificing smart tax strategy.

Key Takeaways

• Self-employed borrowers often face more documentation hurdles than W-2 employees.
• Lenders analyze two years of tax returns and focus on net income, not gross revenue.
• Over-aggressive tax deductions can reduce qualifying income — balance tax savings with borrowing goals.
• Different lenders use varied methods to calculate income from K-1s, Schedule C, or corporate returns.
• Bank statement programs and alternative loan products can help bridge qualification gaps.
• Proper planning, documentation, and collaboration between your CPA and lender are critical for approval success.
• Start planning early — ideally six to twelve months before you apply for a mortgage.

Notable Quotes

1. “Tax strategy and mortgage qualification go hand in hand for the self-employed.” — Parker Borofsky
2. “The number one mistake I see is people writing off everything and then wondering why they can’t qualify.” — Chris Picciurro
3. “Income for lending and income for tax purposes are not always the same thing.” — Parker Borofsky
4. “If you’re self-employed, think long-term — what you claim on your return can make or break your loan.” — John Tripolsky
5. “Your lender and your CPA should be talking before you apply for a mortgage.” — Chris Picciurro

Resources

• Sponsor: Wealth Builders Mortgage Group — wealthbuildersmortgagegroup.com
• Teaching Tax Flow Hub: teachingtaxflow.com/hub
• Join the Defeating Taxes Community: defeatingtaxes.com
• Teaching Tax Flow YouTube Channel: youtube.com/@TeachingTaxFlow

Episode Sponsor:
Strategic Associates, LLC
Roger Roundy
www.linkedin.com/in/roger-roundy-86887b23

• (00:03) - Mortgage Solutions for Self-Employed Individuals
• (03:38) - Navigating Mortgage Challenges for Self-Employed and Real Estate Investors
• (07:56) - Navigating Self-Employment Challenges in Mortgage Lending
• (15:52) - Self-Employed Loan Strategies and Bank Statement Programs
• (20:22) - Navigating Mortgage Options for Self-Employed and Investment Properties
• (28:13) - Navigating Real Estate Loans Without Tax Returns
• (32:23) - Exploring Tax Education Through YouTube and Podcast Collaboration