If you are self-employed, getting a mortgage is not as easy as the conventional working person.
As a self-employed person, you may already know that most things credit-related don’t come easy for you. It’s almost like they’re punishing you for being self-sufficient, but rest well knowing that’s not true. Your atypical work schedule signals there’s something wonky going on and you just have to provide a little extra paperwork to prove that you can give the bank its money. Here is what you need to know about mortgages for the self-employed person.
Factors to Consider
- Stability of your income
- Location and nature of your business or occupation
- The demand for the product or service your occupation provides
- Financial strength of the business
- Your ability to continue generating sufficient income to enable you to keep paying your mortgage throughout the years
Length of Self-Employment
- Fannie-Mae normally requires you to provide two years of history detailing your method of income.
- A person with only twelve to twenty-four months of paperwork may also be considered if their taxes prove their income is equal or greater than what the field generally produces.
How to Waive Verification of Income
- You use your own funds to pay the down payment and closing costs, as well as satisfying the applicable reserve requirements.
- You have been self-employed in the same business for five years.
- Your tax returns show an increase in self-employment income over the past two years.
Homeownership is a very important step in anyone’s life, but you should not dive in head-first without doing research–it may save you thousands of dollars. For all of your home loan needs throughout Solana Beach and San Diego County, as well as all of California, contact Elvin Wesley at Ranch & Coast Mortgage Group Inc. We have the experience needed to make sure you get the right mortgage.
