If you own your own business, you may find that you have trouble
getting a home loan due to strict debt to income ratios and other regulations
imposed by banks. There are self employment home loans that can make getting a home loan easier. Choosing the right lender or mortgage broker can make all the
difference and help make your home ownership dreams a reality.
Owning your own business has many advantages. For one, you get to be
your own boss and set your own schedule. You also have the opportunity to do
exactly what you want to do and grow your business in a way that makes sense
for you and your family. You are not a slave to the time clock and you don’t
have to deal with a domineering boss breathing down your neck. You also can
take advantage of many tax write offs and can pay yourself what you are worth.
However, there can also be a downside to being self-employed,
especially when it comes to qualifying for a home loan. Tax deductions can make
it look like you are losing money when in fact your business is quite
successful. Business loans or other debt can make your debt to income ratio
look very high and having a number of business loans may even end up taking a
toll on your credit. Rigid lending standards can cause banks to take one look
at your tax returns and send you out the door so fast your head will spin.
This can be very disheartening. You have spent your life building a
successful business, but the very elements that make you successful make you
look like a lending liability. Even if you have a steady stream of income, it
may be difficult to verify using traditional lending standards and the
situation may seem hopeless. But, don’t fret. There are many, many options for self employment home loan
s and many
lenders who can help you find the home loan that you need.
If you find yourself in the unfortunate situation of being denied by a
bank, start thinking about a private lender. A private lender is a mortgage
broker or investment firm that has access to private funds and collateral that
can be used to fund a self employment home loan
. A private lender is licensed by the state that he works in and
still must adhere to federal fair lending practices and guidelines. This is
good news for you because it provides protection for your investment and
recourse if you feel you have been treated unfairly.
There are many benefits to using a private lender compared to a bank.
Here are four of the most common benefits that a private lender can offer.
Easier qualification process. Since private
loans are funded by investors, there are less stringent qualification
requirements. This means that bad credit, high debt to income ratios due to
business loans or tax deductions, or even previous foreclosures or business
failures matter much less. A private lender is more likely to look at your
entire financial pictures as well as the potential to make money on an
investment property than a bank is. This makes getting a loan easier. Also,
there is a lot less paperwork which can be a huge bonus for the busy business
Faster qualification process. A bank can take 30
to 45 days and in some cases even more to fund a loan. With a private lender,
the process can take as little as a week. This is great news if you want to buy
a property quickly or want to make your offer stand out in a bidding war. Often
sellers will take a lower offer with a faster close time to unload the property
Investment opportunities. Private lenders and
private self employment home loans
are often tailored for investment properties. As a business person, you know
the value of real estate investing and can take advantage of a private lending
A private lender has access to loans that banks
do not. From hard money loans to other private collateral loans, a private
lender can find the right loan for you.
Don’t delay, act today!
Find a private mortgage lender to get started on your self employment home loan
. You will be
glad you did!
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027