I had to dig up PayPal records from two years back for a $100 transfer—turns out it was just me splitting dinner with a friend.
That’s classic. I’ve seen lenders ask for explanations on the tiniest deposits—like, they want a letter for every random $50 Venmo. Honestly, it’s a mix of both: risk aversion and outdated systems. The guidelines are written for W2 folks, so anything outside that box just throws them off. I wish underwriters had more flexibility, but until then, keeping super organized records is the only way to survive the process.
Honestly, I get why people say it’s all about outdated systems, but I think some of it is just plain overkill. Like, sure, they want to make sure you’re not laundering money or whatever, but chasing down a $50 Venmo from months ago? That feels less like risk management and more like busywork. I’ve had underwriters ask for explanations on deposits that were literally birthday gifts. There’s gotta be a better way to verify income without making us jump through hoops for every coffee run split.
Title: Why Is Getting a Mortgage So Hard When You're Self-Employed?
- Totally get the frustration with the endless documentation. Underwriters are basically detectives these days—except instead of solving crimes, they're piecing together your Starbucks habits.
- The $50 Venmo thing? Yeah, it's overkill. But from their side, any "mystery" deposit could technically be income or something shady... even if it's just Aunt Linda's birthday cash.
- There are some lenders who use more common-sense approaches, but most stick to the strict guidelines because they don't want to risk the loan getting kicked back.
- Best tip I give clients: keep personal and business accounts separate, and try to avoid random transfers if you know a mortgage is in your future. Makes life way easier, even if it feels like you're prepping for an audit just to buy a house.
- Honestly, it’s wild how much paperwork they want now. I’ve seen clients with six-figure incomes get grilled over $20 PayPal transfers—like, really? But I get it, lenders are covering their bases.
- I always tell folks: if you’re self-employed, expect double the hassle. Tax returns, profit & loss, letters from your accountant... the works.
- Curious—has anyone actually had luck with these “common-sense” lenders? I keep hearing about them, but in practice, seems like everyone’s still playing by the same rulebook.
I hear you—it’s a slog. I’ve worked with a few so-called “common-sense” lenders, but honestly, the process wasn’t much smoother. Maybe a little less rigid on minor stuff, but the paperwork mountain’s still there. Just gotta keep pushing through.
