Need letter from CPA for a Bank Loan or Mortgage

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.

Some common formats may include the following (this is an actual excerpt [names changed] from a client letter that I wrote and the client was happily approved):

Regarding 2016, based on client-provided data, Mark is on track to earn similar income as the prior years. Since 2016 is not over yet, nobody can say for sure how much Mark will earn, but his bank accounts show a very similar income stream as prior years and is expected to be $72,000.

The analysis that I have created is strictly based on data obtained from the client. I make no representations or guarantees that Mark will actually earn this income, or any income at all. I can, however, extrapolate based on the information provided by the client that his income in 2016 is relatively consistent with income he has shown in prior years.

This letter is not a binding agreement for George Dimov to underwrite, co-sign, or vouch for the credit worthiness of Mr. Mark Wesserman and is meant to be for informational and discussion purposes only. The analysis provided is simply for comparative purposes and is subject to subjective interpretation.

George Dimov, CPA, is not responsible for negative (or positive) outcomes that the information here may bring.