Saturday, December 21, 2013 - Article by: nationwidelenderforyou - AFG -
Business owners and other self-employed borrowers have often found it more difficult to obtain a mortgage, than borrowers that are salaried. Some of the barriers that self employed borrowers typically deal with on a loan application has to do with income and employment verification requirements. While a self employed borrower can enjoy a great income, verifying income can present a plethora of challenges. This is because most lenders and loan programs base their income on the net, not the adjusted gross income on tax returns, which a self employed borrower or business owner obviously keeps as low as possible to minimize tax liabilities. The documents that are required to verify self-employment today can vary widely between which program the borrower wants to pursue. Those seeking to purchase or refinance a homes with conventional or FHA loan are required to submit copies of tax returns for the last two years, with all schedules. In order to qualify, the net, not the adjusted gross income for the last two years is averaged, unless the most recent year shows declining income, in which case the lower number will be used. The new debt-to-income ratio (DTI) cannot exceed 42% percent of the borrower's monthly income.Remember it is imperative to work with a knowledgeable and experienced loan officer, when applying for a mortgage, when you are self employed. I have been lending since 1987, and I understand how crucial it is to correctly structure a self employed loan. For example, some loan officers forget to help borrowers increase the amount of their income that can be used to qualify. Items like depreciation and salaries which were paid to them through their businesses, can be added. In addition to traditional financing, I also understand the intricacies of alternative loan programs. For example bank statement programs which uses deposit amounts to verify income versus tax returns. This is an awesome solution for those who have cash businesses, requested an extension on their taxes and or those who simply have great accountants who have been able to minimize their tax liabilities. I also offer no doc and stated loans programs. Remember that these alternative loan programs will come with above market mortgage rates. Call me at 800 315 8803 or visit www.bartprequalifies.com to discuss your self employed loan.At www.bartprequalifies.com We have a few different mortgage options for the self employed such as NO DOC LOANS, STATED LOANS, bank statement loans, and of course traditional financing. Call us 7 days a week to discuss your self employed loan needs, at 800 318 8803 or visit www.bartprequalifies.com
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