If you are self employed you have probably experienced some challenges when applying for a home loan. Home loans for self employed business owners can be difficult especially if you aren’t working with a home lender that specializes in home loans for self employed business owners.
Many lenders group self employed borrowers in with other less than prime groups like subprime borrowers. This unfortunate practice can be overcome by working with a home lender that understands the intricacies of self employment and provides home loans for self employed borrowers.
There are some tips that can help with securing a home loan when you are self employed. Try using these techniques the next time you apply for a home loan if you are currently self employed.
Home Loans for Self Employed Business Owners – Try These Tips
1. We will start with the obvious. Review your credit reports and get any discrepancies or incorrect items removed before you apply for a home loan.
2. Make sure your personal and business tax returns are current and up-to-date. Also be sure to have current business financial statements or at a minimum a profit and loss statement or income statement. Lenders will want to see that your business income is stable. Current income tax returns and financial statements can help document your business income stability making you a better loan candidate in the eyes of home lenders.
3. Be prepared to make a larger down payment. Self employed home loans are easier to obtain if you have a larger down payment. You can show lenders you are financially stable and capable of taking on a mortgage by making a larger down payment.
4. Make sure your business has been operating for at least 1 year and preferably 3 years or more. The age of your business is very powerful. It is easier to secure a home loan when self employed if your business has been established for at least 3 years.
We have Home Loans for Self Employed business owners available now. If you are ready to apply please complete the pre-approval form below and our loan officers will contact you.