⌂ How to Get a Home Loan if You're a Small Business Owner or Self-Employed

1. Start with your recent tax returns. Lenders will calculate your income for the past one or more years to obtain the monthly average. You will then likely need to provide IRS Form 4506-T. This grants consent to your lender to obtain your info from the IRS.

2. Go easy on the tax deductions for a couple years, at least when you know you’re working toward buying a home. The less you write off, the higher your income appears and odds of qualifying for a decent amount increase.

3. The amount the lender will qualify you for also considers your level of debt. An average of about one third of your monthly income should go to debts such as rent (or current mortgage), credit cards, car loans, student loans, etc. Pay some of these off and your buying power increases.

4. Your credit score plays a major role too. The higher your score, the better your interest rate or chance of getting a loan entirely.

5. Show year-over-year increases in your income. Lenders want to see your business is on solid ground.

Contact Award Winning Realtor Media Fettinger for Further Guidance: Fettinger@outlook.com