While being self employed does add a few twists and turns to the borrowing process, people who own their own businesses can definitely still qualify for a mortgage. It is very important to keep accurate records of your income and expenses every year, and to file (and pay) your income tax on time. As with all types of borrowers, whether self employed or not, having excellent credit is essential. Some of the other factors that are going to help you qualify are:
- Having your business established for a minimum of two years.
- Your stated income must be reasonable.
- A minimum of 5% of your down payment has to come from your own funds. A portion of it can be from a gift.
- Any income tax due during the previous tax year must be paid, and you must have proof of that.
If you are looking for a recommendation for a Mortgage Broker that can help you qualify as a self employed borrower, send me a message! I have the best contacts in the business ready to help you.
And once you are pre-qualified, let’s go house hunting!