If you were making $200k cash per year, could you file that on your income taxes, pay taxes on that for 2 years, and be eligible for a mortgage on a house with proper DTI ratio?
Yes. Properly documented cash income may be used to support income tax returns.
Documentation required to support loan underwriting varies with each financil institution. Check with your lender.
Yes you could be eligible to be approved for a mortgage as long as you can produce documentation. For example you could produce the invoices of your suppliers and the payments you made whether by check or charge card. You could also produce your bank deposit slips. You may be better off to apply with the bank you do business as they would take that into consideration.
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