It is true that it is a bit more challenging to qualify for a home loan if you are self-employed versus someone who is working for a regular salary. However, there is no reason that you should stop yourself from buying a home just because you are self-employed.
Here are a few things you can do to help you qualify for a loan if you are self-employed:
1. Generally, you will need to have been in the same field for two years.
2. Meet with more than one loan officer before you begin your home search.
3. Be prepared to show your tax returns for the last two to three years. Loan officers realize that many self-employed people look worse on paper than they really are because they are able to write off some expenses that salaried people cannot.
4. Attempt to get a pre-approval letter from your chosen lender and have it state that you are pre-qualified for a loan. Your realtor will attach this letter to any offer you submit on your potential new home. This letter will make your offer more attractive to sellers.
5. Talk to your realtor for helpful tips on additional ways to help you get approved.
Being self-employed makes it a bit more challenging to qualify for a home loan, but it is not impossible. You will need to have the proper documentation to prove that you can repay the loan without difficulties. Your realtor will be able to supply you with a list of lenders that specialize in helping self-employed people qualify for their new homes.
Millie Gil has been a successful licensed real estate agent for over 25 years in Florida. Millie is vice president of Bold Real Estate Group, a boutique agency.