How does being self employed affect mortgage application process and interest rates? by kirk.d_253_407 from Topeka, Kansas. Oct 5th 2011
Being self employed has no effect on interest rates, however in the application process, they will look at your tax returns and how your income is derived. So long as you Adjusted Gross Income is sufficient, your ratios are in line with current guidelines, and you have been self employed for 2 or more years, then you will be OK... WilliamAcres.com
Being self employed doesn't effect your loan process as far as programs or interest rates at all. You would just need your last two yrs of tax returns to show your income. If you need any further assistance feel free to give me a call at 816-569-1436.
NO, there will not be a difference on the rates. All I need to vertify is your self employment for a 2 yr history, thru your tax returns.. I have 24 yrs into this industry, so I can usually get everyone qualified . A lot of mortage loan officers will shy away from tax returns, self employment , since they are hard to understand the income, with all the deductions, but i also been a credit underwriter, so it is not diffuclt.. your answer here my email is lindaforloans@live.com
no real effect on the process, just standard documentation... no adjustment or surcharge for se borrowers.... feel free to call if you want to discuss anything.... 913-928-6187... is my direct line... john schweer
The primary area where S/E borrowers have problems is with their federal tax deductions. When a borrower has taken every conceivable deduction many cannot document enough income to qualify, even after performing a Form 1084.Happy funding, Rudi
Self employment does not effect the interest rate you will receive. It does have an impact on the documents that are required and the income you use for qualification. Most lenders require that you be self employed for 2 years. I have one lender that will do a loan with on year of self employment. You will need to provide 2 years of tax returns and your income is based upon the self employment your reported on your tax return. If you need more information feel free to call me at 273-5004 topeka number. Korwin D. Wall KDWallStreet Mortgage Advisors.
As the other responders have indicated, your rates are not affected by self-employment on it's own. The biggest issue that I see is that Loan Officers don't know the ins and outs of which deductions do count against you and which don't. I find myself able to qualify self employed clients that have been turned down by other banks due to their inexperience in calculating the acceptable income. These calculations are also different depending on the loan program as well. If you are having issues, feel free to contact me at 240-752-7549, or at rhanson@westtownsb.com.
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