First Time Homebuyer Tax Strategy to Qualify for a Better Mortgage (Interview w/ Dan Mullen, CPA) - 447

How to Buy a Home: The #1 First Time Home Buyer Podcast

David Sidoni

Business, News, Education, How To, Investing, Business News

4.8 • 891 Ratings

🗓️ 6 February 2026

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

This interview breaks down how self-employed first-time homebuyers can use intentional tax strategy to improve mortgage qualification and avoid higher-cost loan options.

In this interview, CPA and licensed loan professional Dan Mullen explains why many self-employed first-time homebuyers are incorrectly told they cannot qualify for a mortgage. He breaks down the critical difference between taxable income and mortgage-qualifying income, showing how common write-offs can unintentionally reduce buying power if planned poorly. The discussion walks through legal tax strategies—such as depreciation, mileage, and asset treatment—that can preserve lender-approved income while remaining compliant with tax law. The episode also explains why bank statement loans are more expensive and why early coordination between a CPA and lender can dramatically change a buyer’s outcome.

Check out Dan's book Real Decisions: The Financial Impact of Renting and Owning on Amazon

“Buying a home is the financial foundation of virtually every American out there.”

– Dan Mullen, CPA

Highlights

How can self-employed buyers legally qualify for a conventional mortgage without paying more in taxes?
Why does writing off everything on your tax return often hurt mortgage approval?
When does a bank statement loan make sense—and why is it usually the most expensive option?
How early should freelancers and business owners involve a CPA if they want to buy a home?

Check out our updated 2026 First Time Homebuyer's Episode Guide - Over 100 of our BEST Episodes of Detailed Homebuying Knowledge, Interviews, and MORE!

Referenced Episodes:

444 - February 2026 is a Buyers Market - What First Time Homebuyers Need to Know
367 - Why Financial Advisors Can’t Help You Buy a Home - INTERVIEW
368 - The Truth About Renting: What You’re Really Paying For - INTERVIEW
370 - The Truth About Tax Breaks for First-Time Buyers - INTERVIEW
408 - How to Buy a Home - Step 8: Using the Internet to Buy a Home
392 – New Construction vs. Resale: Which Home Is Right for First-Time Buyers?
437 - What Is a Unicorn Realtor? First Time Homebuyer FAQ:
340 – Down Payment Assistance, Discovery Calls & Lending Myths (INTERVIEW)
426 - Lowering Your Down Payment – Financially Prepare to Buy Your First Home – Pt. 7
332 – Home Inspections: What’s Normal vs Red Flag? (110 Replay)
400 - Introduction: How to Buy a Home Starter Series (START HERE)

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Visit our Resource Center to "Ask David" AND get your FREE Home Buying Starter Kit!

David Sidoni, the "How to Buy a Home Guy," is a seasoned real estate professional and consumer advocate with two decades of experience helping first-time homebuyers navigate the real estate market. His podcast, "How to Buy a Home," is a trusted resource for anyone looking to buy their first home. It offers expert advice, actionable tips, and inspiring stories from real first-time homebuyers. With a focus on making the home-buying process accessible and understandable, David breaks down complex topics into easy-to-follow steps, covering everything from budgeting and financing to finding the right home and making an offer.

Subscribe for regular market updates, and leave a review to help us reach more people. Ready for an honest, informed home-buying experience? Viva la Unicorn Revolution - join us!

Transcript

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0:00.0	Welcome to the show as we continue the essential 2026 checklist for first-time home buyers.
0:06.3	This is going to be a bonus checklist item because it's tax time.
0:10.4	Have you ever wondered what to do when you're filing your taxes to make sure that you look the best when you get ready to do your home loan application?
0:18.4	I know a lot of times whether you're a W-2 and especially for my
0:22.5	1099 employees, they have major questions about this. Fortunately for you, today I have a tax
0:29.4	expert who literally wrote the book on all things first time home buying. He's an incredible resource.
0:36.5	I actually found the book, reached out to him,
0:39.0	and turns out he's one of those people that helps you when you're doing your taxes as opposed to
0:45.6	hindering you. Yeah, one of the big bummers about doing your taxes on your own or doing your
0:50.9	taxes with a professional that's just trying to get you the most money
0:54.5	on a refund, is that sets you up for big disappointment when you're trying to buy a home.
0:59.9	Let's get into all this right now.
1:02.9	How to Buy a Home Educates, protects, and connects first-time home buyers to qualified bedded realtors in their area,
1:08.8	whether you're looking for DIY information or step-by-step
1:11.6	guidance. How to buy a home is the number one resource for first-time home buyers.
1:17.3	Hey everybody, welcome in. Man, you know, it's that time of year. Half of you out there freezing.
1:23.7	It was 78 degrees here in Southern California, don't hate. But it's also tax time.
1:30.6	So it's time for me to bring in Dan the taxman around here.
1:35.1	Mr. Dan Mullen, how are you doing?
1:36.8	Doing wonderful.
1:38.0	How are you, David?
1:39.2	I'm all right.
	...

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