Letter from CPA

[BSBRose21]

We are working with a bank on a FHA Loan.  They have requested the following for my husband's self-employment

"Please provide a statement of explanation for  Letter of Explanation: from CPA on use of business assets: Provide letter from CPA/tax preparer verifying no negative effect on business from use of those funds for closing."

His business is as a sole properietor. The bank account we are paying from is "our account" but it is where many business expenses come from. I complete the accounting and our tax preparer looks at everything only once a year.  I don't know who should complete this.

[Anonymous]

I just went through the FHA underwriting process myself. I am not self-employed, but there were documents that I had to obtain from my firm To provide information such as when my next pay increase is, how likely it is to be provided, what my bonuses are, how likely they are to be provided, etc. FHA has very strict underwriting requirements because they're guaranteeing the loan. My suggestion is that you go to your tax accountant, explain the situation, and he or she will almost certainly know what to say in a verification letter.