Mazzara: The broader mortgage industry may view applicants with uneven income flows as erratic. But since we look at a 12- or 24-month snapshot, we really don’t view them as erratic. We are not using tax returns or verifiable income; we are using cash flow. Borrowers can offset a higher rate with a larger down payment, however most of our clients typically do not look at an interest rate as the determining factor. It’s about liquidity and what they can do to earn more money rather than put capital into their home to save a couple of dollars on their mortgage.

Source: Washington Post August 19, 2021 09:22 UTC