Now let's get qualified for your home loan using its income.
It can be a struggle to obtain/qualify for a home loan when you pay yourself your income. If you're self employed, earn a 1099, file a Schd-C, have an S-Corp, or any other structure for the self employed guru, then Mortgage Investors scrutinize your income practices a bit more tightly. Why is this? Risk my friends, it's all about risk. Lenders want to make sure they will be paid back and proving the income on a self employed client can be a bit more difficult than just looking at a pay stub. Add being a First Time Homebuyer on top and it can be down right daunting.
Here's the real deal... In many cases, as an employee of yourself, you can say you're paying yourself anything you wish. What the Mortgage Underwriters want to see is a history of receiving the income that you state. The best way to accomplish this goal, and get approved for your requested home loan, is to demonstrate a 24+ month history of income filed with the IRS. This can be done by providing your lender with the most recent 2 years of your personal Tax Returns if you file Schd-C or Schd-E income, or the same timeframe of Corporate Returns.
I Don't Have Two Years of Filed Business Income
It's not the end of the tracks for you comrade. There are Mortgage Investors out here who cater to those who don't yet have 2 years of Tax returns filed for their company.. or who write off so much that they no longer show an income stream.
Bank Statement Loans:
12-24 Months of Bank Statements showing your business deposits might be the best way to go to qualify for this next home purchase or refinance. Demonstrating that your business brings in the bacon and you've diligently made bacon deposits into a bank account could be just the ticket to your loan approval.
Multi-Property Monopoly Winners:
So you have a bunch of properties earning rental income but they don't quit pencil out on your Sched-E taxes to show income.. well there's a loan made for you. There are Investors out the who get this, and will base your qualifications on the Lease Agreements and proof of rental income alone and not all of your expenses, cause you're a winner at the game of life, er.. um, Monopoly.
Assets Held In Accounts:
So you have a wad of cash hanging out in an account earning interest hand over fist. Sure money makes money and you know this, but not every Mortgage Lender will see it your way. Thankfully, a few will. This type of loan can be called "Asset Depletion" or a "Use of Assets" Loan. Regardless of what it's called, there's a chance you can qualify based on the funds that you hold and hold close.
Are YOU Self-Employed?
If you'd like to find out what is possible and get rid of the fear, "I don't think anyone would give me a loan", then just reach out and we can talk through your options. Maybe it's about gameplanning and your time to buy or refinance is next year - or next month. Regardless of when, finding the path to your dreams is what we do! Let's get you pre-approved.
