The main problem is that most self-employed people do not keep good records of their business activity. The standard FHA mortgage lender would allow the borrower to have proven income in the form of tax receipts for at least two years.
Some may be able to get through with just one year’s worth of earnings, but only if they have demonstrated substantial and sustainable profits. Lenders can also make judgments on the company’s future prospects when making a decision. You can also learn how to get approved as a self-employed borrower.
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Many start-ups ‘ business credit score will be zilch. That’s because most new startups don’t have to show a lot of working capital, and most of them are likely to be in debt to a small business loan. It makes it increasingly difficult to obtain a loan as both the applicant’s business credit line and the applicant’s personal credit line are being checked.
Mortgage brokers increase the likelihood that many times a loan will be found relatively quickly. Brokers have access to a multitude of borrowers, so in a matter of minutes they can find the best offers.
The inability to afford a house does not have to interrupt your self-employed lifestyle. The first step is to check your credit rating, followed by an obsessive hunt with your option of mortgage broker. You will close the deal and move in in as little as a month.