Nickel City Funding helps a wide array of homebuyers with unique financing needs. This week, we are here to help explain why someone may need a self-employed loan. If you are an entrepreneur or contractor, or have non-traditional sources of income, then this loan may be your ticket to a new home. Read on below for more information on how you can benefit from this streamlined home application process. Feel free to call Nickel City Funding’s Orchard Park, NY office with any questions. We are here to help!
Qualifying for a Self-employed Mortgage Loan
You may want to speak with your accountant or financial professional to determine if you are ready to qualify for a self-employed mortgage. Gather all of the documentation you will need to prove your worth as a borrower during the application process. You will go through a similar loan qualification process as with many loans. What differs is the documentation you may be asked to provide.
If you submitted standard income, tax, and credit information through an automated underwriting process in a regular loan program, you may be disqualified. Be sure to work with a company experienced in the self-employed loan process. A manual underwriting process may be needed to approve your loan. You should be ready to provide thorough records of your business income, retirement and investment accounts, savings accounts, and debts. Your credit and employment history may also be checked.
Be ready to show income projections if your source of revenue is seasonal or sporadic. In addition, you may share any business plans and market studies. Demonstrating demand for the product you sell can be helpful for a lender. Your money management skills may be scrutinized, as well.
Your Paperwork for Self-employed Loans
Documentation that you own a business may be needed. Banks like to see that you own and control 25% or more of the company. Gather and have ready bank statements that date back a few years into your proof of income and expenses. Your own tax statements and those of the company will be needed, along with profit and loss statements. If you have previous employment that demonstrates your skill set in the business you own, show this history of success.
Trusted Professionals in Self-Employed Loans
When you contact Nickel City Funding in Orchard Park, NY ask our team about banks that have experience providing self-employed loans. Be sure to shop around and compare mortgage rates. Read their consumer reviews and reports thoroughly. Working with a trusted professional in the process is recommended.
A self-employed loan may not be the only option for you, contact us today and explore all the programs available. We look forward to supporting you in your home ownership goals.