It’s like they’re looking for reasons to say no, honestly.
I get what you mean, but I’m not sure it’s always about saying no—sometimes I think they just don’t know how to handle non-traditional income. When I applied, they grilled me on my business meals deduction. Like, how many lunches can one person have? Meanwhile, I had two years of tax returns and a spreadsheet with every expense, but they still seemed skeptical. Did you end up having to provide extra documentation for your car expenses, or did they just accept your logs?
I swear, the hoops they make us jump through are wild. When I refinanced, they wanted receipts for every single tank of gas and even asked if my car was “exclusively” for business. Like, sure, I only drive to client meetings and never to the grocery store... right. I had a mileage log that looked like a novel, but they still wanted more proof. At one point, I half-expected them to ask for a selfie with my odometer.
Honestly, it feels like they just don’t know what to do with people who don’t get a W-2. It’s not even about trust—it’s like our whole way of working just short-circuits their system. I get that they need to be careful, but sometimes it borders on absurd. If you’re self-employed and eat lunch out more than twice a week, apparently you’re living too large for a mortgage? Makes no sense.
It’s wild how much extra paperwork they want, right? I remember when I tried to buy my second rental, they asked for three years of tax returns, profit and loss statements, AND six months of bank statements. Then they circled every “large” deposit and wanted an explanation for each one. Like, what counts as “large” anyway? Sometimes I wonder if they even read half the stuff we send or if it’s just a box-ticking exercise. Ever had them question a Venmo transfer from a friend? That was a new one for me...
Title: Why Is Getting a Mortgage So Hard When You're Self-Employed?
Yeah, the “large deposit” thing gets me every time. I had to explain a $900 transfer from my sister because we split a vacation rental and she paid me back—felt like I was being interrogated for money laundering or something. I get that they need to check, but sometimes it feels like they’re just looking for reasons to say no. The Venmo stuff is wild too... had to print out screenshots once. It’s like they don’t trust anyone who doesn’t get a W-2.
I had to explain a $900 transfer from my sister because we split a vacation rental and she paid me back—felt like I was being interrogated for money laundering or something.
- Had the same thing happen when I refinanced last year. They flagged a $1,200 deposit from my business account (which is just me moving money around to pay myself). The underwriter wanted three months of statements and a letter explaining it... felt like overkill.
- I get that they want to make sure you’re not hiding debt or something shady, but honestly, it’s not like W-2 folks don’t move money around too. Why is it assumed self-employed = suspicious?
- The Venmo thing cracks me up. I had to print out PayPal invoices for a freelance gig and the loan officer literally asked what “website work” meant. Like... it means I built a website?
- Is this just stricter post-2008 rules or do banks just not know how to handle non-traditional income?
Curious if anyone’s actually had an easier time with online lenders vs traditional banks? Or is it all the same hoops?