If you are self-employed, it can be tricky to qualify for a home loan
due to debt to income ratios and business losses. Using hard money lenders Texas can
make the process easier and has many other benefits when it comes to qualifying for a self employment home loan.
For many Americans, owning their own business is a dream come true. If
you are self-employed you enjoy many benefits both financial and otherwise.
Most likely you are able to set your own schedule and you answer to yourself.
You can work from home or whatever environment you may choose. You can set your
own dress code and hours and take time off when you need it. You can also take
advantage of many tax deductions to write off most of your business expenses.
Everything from large equipment purchases to pens for you home office can be
tax deductible which can help you save big come April.
While you may enjoy your tax savings most of the time, it can be a
double edged sword, especially when it comes to qualifying for a home loan.
Many times, people who are self-employed have tax returns that do not
accurately reflect their actual income due to deductions. Sometimes it can even
make it look like you lost money when you in fact had a good year. Throw in any
debt you may have for business or personal purchases and your debt to income
ratio can make you look like a huge liability to a bank.
For these reasons, many business owners find it difficult to secure a
traditional mortgage from a bank. However, there are many other options to find
a self employment home loan that
will work for you. One key to finding a loan is to think outside of the
traditional bank or mortgage broker and hard money lenders Texas
like Level 4
Funding to finance your loan.
Pros and Cons of Using Hard Money Lenders Texas for Your Self Employment Home Loan
For many business owners, a private lender is their best chance of
securing a self employment home loan.
However, like any major financial decision, there are pros and cons that need
to be carefully considered before making a decision.
Pro: A private lender often has a very short
approval process. Banks and public lenders can take anywhere from 30 to 45 days
(and sometimes more) to approve and fund a loan. If you need a quick loan to
buy a property, this can be too long. Also, when it comes to a self employment home loan, traditional
banks will likely have issues during underwriting and come back to you several
times asking for more paper work, more proof of income, more documentation. Hard money lenders Texas can have you funds in as little as 1-2 weeks with significantly
Con: Private loans are usually more of a risk
for the lender. As such, you can expect to pay a higher interest rate for the
Pro: Easy to qualify. A private mortgage lender
has more flexibility than a bank in terms of who they lend money to. Borrowers
who have bad credit, a high debt to income ratio, or are looking for a self employment home loan will have an
easier time qualifying with a private lender than with a bank.
Pro: Geared towards investments and investment
properties. If you are self employed, you know the benefit of having your money
work for you to make more money. Private lenders have short term loans that are
geared towards investment properties and fix and flip houses.
Once you evaluate the pros and cons, it is easy to see that in many
cases, hard money lenders Texas
are the best option for your self employment home loan
. Like all brokers, private lenders have
to be licensed and they do have guidelines to follow to protect you and your
investment. As long as you know that you will be able to make your monthly
payments there is relatively low risk and a high reward for the self employed
Stop waiting for a bank to give you the home loan you need. Take
matters into your own hands and make your dreams come true today!
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.