Are there any Banks or Credit Unions that offer a Cash-Out Refinance with only 1 year of tax returns as proof of income?
Are you self employed?
You can show your most recent year of tax returns if you can prove that you've been self employed for at least 5 years
Yes, self-employeed in the same business for 18 years. 2018 tax returns look great but 2017, not so much. I do not want them to "average" out the 2 years which I understand is the procedure if asked for 2 years of returns. I am also looking for a cash-out refinance. LTV will be closer to 60% after the refi. My DTI is a little high right now and using the cash-out to consolidate some of my higher interest credit cards. I realize some would advise agiant this but I put down a large amount of money when I purchased my home almost a year ago and I should have paid down those debts with some of that cash instead of using it for a down payment.
Many of us lenders do not require 1040s or the validation of your taxes via 4505-T unless you are self employed. As stated below, if you are S/E, you can get away with the most recently filed tax returns providing you can verify you have been self employed for at least 2 years (for some programs) and as much as 5 years for Conventional.