You are a business owner and work for yourself! Congratulations!
Do you want to get a mortgage while being self-employed?
Keep in mind that the rules for obtaining a mortgage for the self-employed work differently than for those who work for the company and getting paychecks.
What are the differences in getting a mortgage when you are self-employed?
?Your business must be open for at least two years.
? Your business should have the same structure. If the structure has changed, you need a clear explanation by the 3rd person why it has changed.
?Bank will use your tax returns to confirm your income. Only the income that you indicated in the tax return will be used and it’s a net income meaning the income after all deductions. ⠀
? Bank will use only your portion of business income. If you have a partner who is not on loan application, that portion will be excluded.
Therefore, if you are working for yourself, it is very important to correctly fill out tax returns and plan ahead. I recommend to have an initial mortgage consultation 2 years before you apply for a mortgage if you are self employed. You can learn few life hacks about getting your chances higher to get a mortgage and have a strategy.
Here is one life hack for you that will help you to get a mortgage for higher amount.
If you are Self-Employment and have a car that is financed: most probably, you are writing it off on your tax returns but how do you pay for your car?! Using your personal or business account?
Well, if you are paying for it using your business account then we can exclude it when calculating your debt to income ratio. Hence, it will improve your ratio and you will be able to qualify for more! How about that?!
If you want to see your chances getting a mortgage in Florida, apply here.