I need a letter from a CPA for a mortgage loan. I am self-employed and my CPA just informed she doesn’t do these types of letters. It needs to state that I have been self-employed for 2+ years and that I am in good standing with the state.
We need a CPA letter. See below items 1-4 letter must say.
CPA, EA, or licensed tax preparer or equivalent letter verifying my business. The letter must be on letter head, with contact information, and license number. Please include the following information:
I opened a business in New York in 2013. The business was open for approximate 2-3 months before I permanently closed and I relocated back to Ohio.
Unfortunately I was told by mortgage lender that because I did not appropriately dissolve the business and just packed up and left.
I will need a CPA letter of verification stating that the business is not open.
If you’re self-employed, securing a loan or verifying your income for tax purposes can be a unique challenge. Lenders and institutions often require official documentation confirming your financial standing and income stability, which is where a CPA letter comes in. A CPA (Certified Public Accountant) letter for self-employed individuals provides a third-party verification of income, making it an essential document for loan applications, mortgage approvals, and tax records.
This sample can serve as a guide to help self-employed individuals understand what to expect in a professionally drafted CPA letter. Customize the template as needed to match specific lender requirements or unique financial situations.
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A CPA letter for self-employed individuals serves as an official statement confirming your income, financial stability, and self-employment status. These letters are typically prepared by a certified accountant to provide reliable verification that lenders and financial institutions can trust. Whether you’re applying for a mortgage, securing a loan, or verifying income for tax purposes, a CPA letter adds legitimacy and meets the documentation requirements often set by lenders and other third parties.
Financial institutions, mortgage companies, and even the IRS may request a CPA letter to confirm self-employment income. These letters help lenders understand your financial position, assess risk, and ensure that your income can cover the financial obligations you’re applying for. Common requests from lenders for CPA letters include
When you’re self-employed, proving your income can be more complex than simply providing a pay stub. A CPA letter is an effective way to formally verify your income, which is especially important when applying for mortgages or loans. Without a CPA letter, lenders may find it difficult to assess your financial stability, potentially leading to delays or even denials in the loan approval process.
If proper income verification isn’t provided, your application might face additional scrutiny or delays. A CPA letter minimizes the risk of loan rejections by offering verified financial information and providing proof that your self-employment income is stable and reliable.
If you receive a request from a lender or financial institution for a CPA letter, here are the steps to take:
To request a CPA letter, start by reaching out to a certified public accountant. Explain the purpose of the letter—whether it’s for a mortgage, loan application, or income verification—and share any specific requirements outlined by the lender or institution. Provide your CPA with a comprehensive overview of your financial situation to ensure accurate verification.
A well-structured CPA letter should include several key components to meet verification standards:
Looking for more support as a self-employed individual? Check out our services for:
While you can draft a basic income letter, it’s generally recommended to have a CPA verify and sign it for authenticity. Include key sections like income details, self-employment verification, and contact information for a credible document.
CPA letters provide third-party verification for your income and financial status, which can be essential for loan applications, mortgage approvals, or tax documentation. Financial institutions and lenders trust CPA letters as they are issued by certified professionals.
Although you can technically write a letter, most lenders will require a third-party verification for authenticity. A CPA-signed letter adds legitimacy and meets lender requirements, making it more credible than a self-issued letter.
The cost of a CPA letter can vary depending on the complexity and location but typically ranges from $100 to $500. Contact a CPA for an estimate based on your needs and any additional verification requirements.
A CPA letter should include the CPA’s credentials, client’s information, income details, duration of self-employment, and the CPA’s contact information for verification purposes. This structure ensures credibility and fulfills most lender requirements.