Loans for Self-Employeds

I can't begin to tell you how many times I've had the opportunity to close a home loan for a self-employed individual or family after they have been turned down elsewhere. Maybe it is because I care enough about my clients to take the time to carefully analyze both individual and business tax returns, to understand what their real income is, at least according to standard underwriting practices.

Are there loan programs out there for those who can't qualify with income shown on tax returns? Yes, but they usually rely on deposits either to individual or business bank statements...and they typically require a larger down payment, and carry higher interest rates. Some programs today only require one year's business returns, without averaging income over a two-year period--which helps many.

Any way it works out best for the client, I love solving problems--and seeing them achieve their dream home, or dream loan. Today I am helping an artist who wants to buy a home but doesn't show much income on her tax returns. By eliminating her studio rent, which she she won't need once she is a homeowner, we can attribute more income to her in order to help her qualify for a larger loan.

Sometimes I will completely eliminate a self-employed spouse from the loan application, and just take the W-2 employee in order to qualify. It does take thinking outside the box. And TEAMWORK

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