Self-Employed? Here's How to Get a Home Loan
A critical factor when qualifying for a home loan is income. Lenders need to know that you have a stable income that allows you to sustain a mortgage. While traditional homebuyers can prove this easily with a standard W2 from their employer, a self-employed borrower will need to show proof of income in a different manner.
Income Requirements for Self-Employed Homebuyers
The most common issue for self-employed individuals borrowers is establishing how much they claim as income versus the amount the government decides they made in net income recorded on tax returns. If you're self-employed, be prepared to provide the last two years of tax returns in addition to other supporting documentation when applying for a mortgage. You'll need supporting documents in case there is a discrepancy between what you think your income is versus what your taxes state.
Getting Ready To Apply
Have your last two years Tax Returns available when applying for a mortgage, including your schedule C and/or K-1.
Getting a self-employed mortgage loan is no sweat! Our experienced mortgage professionals understand how to work with self-employed borrowers, and we look forward to helping you get started!