Self Employed Mortgage Loan Options With The FHA
The United States government hands out plenty of benefits to the self employed. They are able to write off many expenses off, enjoy newly-created tax breaks, and also get access to more government programs by being a business owner. Despite these points, the self employed have problems getting a mortgage loan.
The main problem lies within the fact that most self employed individuals don’t keep good records of their business activity. If you have just started out as a business owner, consider getting a tax professional to handle the work for you. That way you won’t have to deal with emerging laws or keep updated on new regulations.
The typical FHA mortgage lender will demand that the applicant has at least two years of income proved in the form of tax receipts. Some may be able to get by with only a year’s worth of receipts, but only if they have shown that the income is excessive and stable. Lenders may make judgments on the future outlook of the business to make a decision as well.
The credit rating of your business is important, because it will be judged just like your personal credit line. It’s important to start building business credit as soon as you establish your business. Otherwise you will be sorely disappointed when a mortgage lender denies your application on the sole basis that your business line of credit was not acceptable.
One thing that can improve your chances is to find a co-borrower. A co-borrower can’t help you save on interest rates, but they will at least let you get approved if you have otherwise been denied. Finding a co-borrower is a lot easier said than done, however. The co-borrower will be responsible if you are unable to make payments, so usually only extremely close friends and family will even consider the act of co-borrowing.
Paying a mortgage broker to do the hard work for you might sound unnecessary at first- but once you go out and look for a good rate you might see why they are so popular. A mortgage broker will scout out prices from a myriad of lenders in your area and across the nation. Afterward, they will report back to you and likely save you thousands of dollars by finding the lowest rates possible. They pay for themselves more often than not, and their fees negotiable.
Closing Comments
Your self employed lifestyle doesn’t have to be halted by the inability to afford a home. The first step is to review your credit rating, followed by avid searching with a mortgage broker of your choice. In as little as a month, you can close the deal and move in.
Learn more on fha mortgage information and self employed fha.
Related Articles
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment