There has been an increasing trend of banks or lenders asking self-employed individuals for letters from a CPA to verify, certify, vouch for, or attempt to estimate the income of the applicant. This income statement is then assessed by the lender when determining whether the loan should be approved. Some examples of requests (variable wording but roughly the same request) include:
- CPA-certified letter projecting income
- CPA letter verifying income is consistent with prior years
- CPA verification of employment
- CPA verification of income
- Financial projection/estimate
- Financial statement signed by CPA
Sometimes, the lender also requests this CPA letter to be notarized (the CPA must sign in front of a notary).
With the right disclaimer, it is possible to both meet the paperwork and compliance needs of the bank while also preserving the integrity of the CPA.
These types of letters have also been requested for apartment applicants to verify their income and are commonly known as CPA letters, Income Verification Letters, or Income Projections. The types of persons being asked for such types of letters include:
- Those paid on 1099
- Persons owning a single-member LLC or other small business
- Self-employed individuals
If you have been asked for this type of letter, please contact us below and we will complete it for you. We serve all 50 states and are Federally licensed.