Qualifying For A Mortgage When Self-Employed
This video explains qualifying for a mortgage when self-employed. Job history for the past two years is a requirement. Your net income needs to show enough income to qualify for the mortgage payment. Fico scores need to range from 580 on up or higher.
Mortgage Options:
We offer a 12 month or a 24 month bank statement program which is a nonqm loan program. What is the difference? For borrowers who are just starting off on their business and did not make a lot of money in their first years, then we normally use the 24 month bank statement program. This allows borrowers to average out their net income over a 24 month period. Which in turns affects their net income by increasing their monthly income. Do not worry about whether you need the 12 month or 24 month bank statement program. We will determine this for you when calculating the necessary income requirements.
Can You Show Plenty of Income:
For borrowers who can show plenty of income you won’t need the nonqm loan products. Instead, you can qualify for the traditional Conforming, FHA, VA, USDA, or Jumbo loan program. One still needs to be continuously employed for the last two years. Filed business tax returns for the last two years is a requirement. Make sure they have been filed on time. If you have an extension, you will need your extension letter. Rates on any one of these loans products is more favorable compared to the nonqm loan product.
Prefer to speak to a live person? No problem. Call our office directly at 602-358-8717. A licensed loan officer is more than willing to help assist. We are open seven days a week. Do not delay. Call now.
Video on Qualifying For A Mortgage When Self-Employed