How to Prepare for Buying a House When Self-Employed - Total Mortgage Blog
How to Prepare for Buying a House When Self-Employed - Total Mortgage Blog
Abstract
Lenders may classify you as a self-employed borrower if: You have sole ownership of your businessYou own at least 25% of your businessYou're a freelance or contract worker whose income is solely or mostly from IRS Form 1099-MISC Can You Get a Mortgage if You're Self-Employed? Yes, it's possible to get a mortgage if you're self-employed. Conventional Mortgages Conventional mortgages are available to all homebuyers who can meet the requirements. Government-Backed Mortgage Government-insured mortgages typically have looser qualification requirements and are another option available to self-employed borrowers. Bank Statement Mortgages A bank statement loan allows borrowers to apply for a mortgage without having W-2s or tax returns to prove income. Buying a House When You're Self-Employed If you're buying a house when you're self-employed, lenders will analyze the following factors: The stability of your incomeThe location and nature of your businessThe demand for the product or service offered by your businessThe financial strength of your businessThe ability of your business to generate and distribute sufficient income to make monthly mortgage payments Mortgage lenders want to see stability in your business income, which is why you may be asked for two years of tax returns as proof. Find a Total Mortgage branch near you and speak with one of our mortgage experts today to discuss your options. If you have any questions about your mortgage options, schedule a meeting with one of our mortgage experts.