February 15th, 2020
It’s really a challenge when you’re self employed and trying to qualify for a home loan to buy a house. You could have stellar income but the way your taxes are prepared with Schedule C income, maybe a traditional lender can’t “qualify” you for the loan amount you know darn well you can handle. Or maybe your finances are just so complicated with LLCs, and other types of partnerships that you just don’t want go through the lender colonoscopy you know you’re going to have to endure to get dissected every which way in order to get the loan. So how to qualify for a home loan when self employed?
There are niche lenders out there now that will write loans based on the income flow on your bank statements. In addition, how these lenders perceive depreciated assets and how they appear on your tax returns as a detriment to your “qualifying income”, can help you qualify for a larger loan.
Rich Wilde at Cali-Land, Inc is such lender you may want to talk to. Here’s his LinkedIn profile I asked Rich to write a few words to share his real life problem solving experiences so that you can get a glimpse into the challenges he’s able to help clients navigate through to success.
How to qualify for a home loan when self employed
Why most all banks view Self Employment income as the same, except for us
What I do is help self employed borrowers increase their purchasing power by helping add back expenses to be approved for higher loan amounts. Some of these expenses under a Schedule C can include but are not limited to any type of depreciation, miles added, business use of home among many other things. When it comes to self employed clients who operate under an S Corp I can add back in depreciation and depletion.
This again will not only increase purchasing power but can be the difference of you getting your dream home or settling for less than what you deserve.
Our most recent example is I had a client that ran trucking and shipping business that had been turned down by many other banks and was about to lose his dream home. He contacted me and not only did we get his loan done and on time we were able to qualify him for much more than was needed.
Another example I can give was for a client who unexpectedly needed to move out of his downtown condo into a house to start a family, however his tax returns were loaded with depreciated assets which lowered his ability to get his wife the home she wanted. He came to me and we eliminated the depreciation, they were able to get into a much bigger home, and we have become amazing friends ever since.
Point being is that when you are self employed do not risk going with the conservative traditional banks with no flexibility that give a yes or no, go with a self employment expert that will fight for you, your family, your dream home, and maximize your income to ensure you get what you deserve.
Hopefully this article on how to qualify for a loan when self employed will give you some hope that there are solutions. To manage your expectations and in the words of the late great Milton Friedman, “there is no such thing as a free lunch” and what I mean is that the self employed loans are perceived by the lenders that do them as carrying higher risk. The APR on these loans will be higher than a full documentation type structure. You can make the decision if it’s right for you. Start the process and call Rich today.
Rich’s email address is: firstname.lastname@example.org and his direct line is (619)882-3915 He operates under license number CA BRE License # 01417218 NMLS # 23014