Can You Get a Home Mortgage If You’re Self-Employed?
It’s clear that it is easier for you to get a home mortgage if you have a regularly paying job. You will need to get a consistent flow of money to ensure that you can actually pay off the mortgage. Still, this does not mean that you cannot get a home mortgage just because you are a self-employed individual. You will need to put in an extra bit of effort to show that you can actually pay off your mortgage though.
Check Your Tax Returns
ou should have the last couple of tax returns to your name available. Your adjusted gross income should be reviewed on two or more years worth of tax returns. This is to help a lender give you an average in terms of what your typical monthly income will be. This, in turn, gives you a clear idea of what you might spend on your mortgage loan or at least what you can qualify for.
What Debts Do You Have?
The debts that you currently hold will play a major role in determining if you can get a mortgage loan. These include debts for existing loans and other dues that you have to pay right now. You should not be spending more than a third of your income on these particular debts.
Meanwhile, the housing-related debts that you have should not be more than another third of your income. This is important as your lender will typically tell you that you can qualify for a particular loan that is worth a total respective of your debts. Your loan will typically be approved if its monthly value is actually a third of your gross income.
The process of getting a home mortgage while you are self-employed is certainly going to take more time for you to handle. Still, you will certainly be able to get a great home mortgage no matter what your employment status is like. Just be sure that your income and debts are recorded properly and that you have enough evidence for showing that you’ve got enough support for actually paying off your mortgage as well as you can.
Special Programs
At Benson Mortgages, we offer have many unique options for self-employed individuals. By filling out our online application you could be eligible for special programs with certain lenders even if you don’t have a 20% downpayment. Contact us today to learn about current promotions and talk to our self-emplyoment mortgage experts!
