Self-Employed Mortgage Loans

If you are considering buying a home but have concerns you won’t qualify for a loan because you happen to be self-employed, don’t worry because we are here to help. We can assist with getting you all the information needed to get you qualified for a mortgage and answer any questions you might have about the process.

It wasn’t always an easy process for those that are self-employed to get approved for a mortgage but times have changed and the process is much easier now. You will of course still need to provide documentation of your financial situation, but you may not need the detailed paperwork that was necessary years ago. For example, if you work more than one job, you could only need to provide documentation of the job that you’ll be using to qualify.

The first step of the process is the same as with any other type of mortgage which is applying for the loan. You may want to shop around and discuss your options with different lenders to make sure you are working with a company that best suits your personal situation. Once you’ve found a lender you want to work with, you’ll want to get all your financial information together to start the process. You’ll have to provide documentation of your income, debts and credit history in order to get approved.

Once you have all your financial information submitted, the underwriting process begins and you will find out if you are approved, declined, or need to make adjustments. The actual underwriter will begin to fully begin getting your mortgage completed if you are approved which can take some time. If you are self-employed, the underwriting process can be complicated when it comes to getting you qualified because lenders only consider taxable income.

The main thing a lender wants to confirm is that you are financially stable enough to pay back the loan as well as that the down payment is coming from a reliable source. You may be asked to provide additional information regarding the source of your down payment in certain situations. You may have to provide other documentation, depending on the underwriter and what they deem is necessary to qualify you as a qualified candidate.

The approval process will vary from lender to lender so you will need to discuss specific requirements with the lender of your choosing once you’ve been approved by an underwriter. The amount of time you have been self-employed is considered when you are applying but the requirements have loosened so you may be able to get approved without meeting the 24 month requirement. You might be able to qualify with just a single year of tax returns but they have to show at least a year of income.

Reach Out Today!

If you are self-employed and are considering your options to buy a home, you’ll want to get an expert opinion from a tax expert, possibly an accountant, and a mortgage lender. We would be more than happy to discuss your options and answer any questions you may have, so feel free to give us a call.