Self Employed Mortgage Loans- What
are My Options?
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Let’s face it; documenting your income when you are self
employed can be a tedious task. Many busy entrepreneurs do not have the time to
pull together past tax returns, letters from accountants, balance sheets and
other information that may be needed for a full documentation loan. Most
investors understand this concern and have developed stated income and no
documentation mortgage programs to help streamline the process. With some of
these products, lenders may be willing to loan money simply based upon your
credit history. There is even a wide selection of stated income programs for
customers who have had credit issues in the past. Most stated income programs
require that you have been self employed for 1-2 years. If you opened a
business in recent months, you may need to go with a no doc product. No
documentation loan rates may be slightly higher than stated and full doc rates
because lenders do not have much information to base their assessment of risk
on.
Many self employed borrowers still choose to go the full documentation mortgage
route because it may provide them with the best available rate. Be sure to ask
your loan advisor about what constitutes ownership interest in a company to the
lenders. People frequently do not consider themselves to be self-employed
because they are simply a shareholder in a corporation. Sometimes lenders may
agree with that rationale as long as the ownership stake does not exceed a
predetermined limit.
Thanks to innovative new products, self employed mortgage loan programs do not
have to be any more difficult than any other mortgage transaction. Whether you
choose to go with a stated income, full documentation, or no documentation
program, make sure to be open and honest with your mortgage professional. Give
us a call today at 877-RATE-LOW (877-728-3569) for a free consultation.
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