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How to Get a CPA Letter for a Mortgage (What Lenders Require)

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Ignition tax
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2/18/2026
How to Get a CPA Letter for a Mortgage (What Lenders Require)

Securing a home loan when you’re self-employed can feel more complicated than it should be. Unlike traditional W-2 employees, self-employed borrowers are often asked to provide additional documentation to prove income stability. One of the most common requests during the Mortgage Approval Process is a CPA Letter for mortgage verification.

If you’ve been told you need a CPA Letter, you may be wondering what it is, why it matters, and how to get one quickly without delaying your closing. This guide breaks down everything lenders typically require, how loan underwriters use the letter, and how to make sure yours meets the mark.

What Is a CPA Letter for a Mortgage?

A CPA Letter for mortgage is a formal letter written and signed by a Certified Public Accountant (CPA). It confirms details about your business, income, and self-employment status.

Lenders request this document as part of their income verification process, particularly when reviewing applications from:

A Self-Employed Borrower

An Independent Contractor (1099)

Owners of a Sole Proprietorship

Members of a Limited Liability Company (LLC)

Shareholders of an S Corporation

Owners of a C Corporation

Partners in a Partnership


The letter helps the Loan Underwriter verify that your business exists, is active, and generates income sufficient to meet lending guidelines.

Why Lenders Require a CPA Letter for Mortgage Approval

Mortgage lenders assess risk carefully. When your income doesn’t come from a traditional employer, they rely on additional documentation to determine whether it’s stable and likely to continue.

The Role of the Loan Underwriter

The Loan Underwriter reviews all financial documents during the Mortgage Approval Process. For self-employed applicants, this includes:

Tax returns

Business financial statements

Profit and loss statements

Tax Return Transcripts

Bank statements

Business licenses


And often, a CPA Letter for mortgage

The CPA letter serves as third-party verification. It confirms that:

You are actively self-employed.

Your business structure is legitimate.

Your income documentation aligns with filed tax returns.

The business is in good standing.

What Information a CPA Letter Should Include

Not all CPA letters are created equal. Lenders often reject generic letters that fail to address specific underwriting guidelines.

cpa letter for mortgage

Basic Information Required

At minimum, a compliant CPA Letter should include:

CPA’s name, license number, and contact information

Name of your business

Business structure (LLC, S Corporation, Sole Proprietorship, etc.)

Confirmation of how long you have been self-employed

Statement that the business is currently active

Income Stability Confirmation

Because lenders focus heavily on Income Stability Requirements, the letter may also need to confirm:

The business has been operating for at least two years (in most cases)

Income appears stable or increasing

The CPA has prepared or reviewed your tax filings

Business Structure Clarification

Different business entities require slightly different confirmations:

Sole Proprietorship: Confirmation you report income on Schedule C.

Limited Liability Company (LLC): Clarification of ownership percentage.

S Corporation or C Corporation: Verification of shareholder status.

Partnership: Confirmation of partnership share and income allocation.

“ When drafting a CPA Letter for mortgage, specificity matters. Underwriters want clear, verifiable statements—not vague summaries. ”

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Who Needs a CPA Letter for Mortgage Applications?

Not every borrower needs one. However, lenders frequently require a CPA Letter & CPA Letter for mortgage situations involving:

Self-Employed Borrowers

If you own 25% or more of a business, most lenders classify you as a Self-Employed Borrower.

Independent Contractors (1099)

If you receive 1099 income instead of W-2 wages, your income is treated as business income—even if you don’t have a formal company entity.

Recent Business Owners

If you recently transitioned from W-2 employment to self-employment, lenders may request a CPA letter confirming business continuity.

How to Request a CPA Letter

If you already work with an accountant, this process is usually straightforward.

Step 1: Contact Your CPA Early

Reach out as soon as your lender mentions the requirement. Delays often occur when borrowers wait until underwriting is nearly complete.

Provide your CPA with:

Step 2: Confirm Lender-Specific Language

Some lenders require precise wording. Others only need verification of self-employment status.

Before your CPA finalizes the letter, confirm with your loan officer:

Step 3: Review Before Submission

Make sure the letter:

Supporting Documents Lenders May Require

A CPA Letter for mortgage & CPA letter alone is rarely sufficient. It usually supplements other required documentation.

Tax Return Transcripts

Lenders often request IRS Tax Return Transcripts to confirm that submitted tax returns match official IRS records.

Business Income Documentation

Depending on your structure, you may need:

Schedule C (Sole Proprietorship)

K-1 forms (Partnership, S Corporation)

Corporate returns (C Corporation)

Year-to-date profit and loss statements

Business bank statements

Self-Employed Borrower Requirements

Common Self-employed borrower requirements include:

Two years of personal and business tax returns

Proof of business existence

Evidence of consistent or increasing income

No significant unexplained declines in revenue

The CPA letter supports these documents but does not replace them.

Common Reasons CPA Letters Get Rejected

Understanding potential pitfalls can prevent last-minute delays.

Missing License Information

Underwriters need proof the CPA is licensed and in good standing.

Vague Income Statements

Statements like “income appears sufficient” may not meet Income Stability Requirements.

Outdated Letters

Most lenders require the letter to be dated within 30–90 days of closing.

Inconsistent Information

If your CPA letter contradicts your tax returns or other Mortgage approval documentation, underwriting may pause for clarification.

How Long Does It Take to Get a CPA Letter?

Turnaround time varies, but most CPAs can prepare a compliant letter within 2–5 business days.

During peak tax season, it may take longer. Planning ahead helps prevent delays in the Mortgage Approval Process.

Does a CPA Letter Guarantee Mortgage Approval?

No. A CPA Letter for mortgage is just one component of underwriting.

Your final approval depends on:

Credit score

Debt-to-income ratio

Down payment

Assets and reserves

Overall financial profile

The letter simply satisfies one part of the lender’s income verification requirement.


Final Thoughts: Preparing for a Smooth Approval Process

For self-employed borrowers, documentation is everything. A properly drafted CPA Letter can streamline underwriting and demonstrate professionalism and financial stability.

If you’re a Self-Employed Borrower, Independent Contractor (1099), or business owner operating as an LLC, S Corporation, C Corporation, Partnership, or Sole Proprietorship, expect additional scrutiny during the Mortgage Approval Process.

The key is preparation:

When handled correctly, a CPA Letter for mortgage & CPA letter requirement doesn’t have to be stressful. It’s simply another step toward securing your home loan—and with the right documentation in place, you’ll move through underwriting with confidence.

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