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If you are self-employed, you may have difficulty qualifying for a
traditional mortgage. However, don’t be disheartened, there are many Texas self-employment home loan options that
can help you find the loan you need to buy the home you deserve.
There are many perks to being self-employed. You get to be your own
boss, decide your own hours, create your own dress code, and in many cases,
answer only to yourself. There are also a host of legitimate tax write offs
that can make owning your own business more lucrative than punching a time
clock. Everything from home office space to computers to office supplies and
sometimes even meals are tax deductible. This can greatly lower your tax burden
and help you keep more of your own hard earned money.
However, while many of these tax deductions can be huge benefits come
tax time, they can also make it difficult to qualify for a home mortgage. For
many business owners, there taxable income and what they actually make can be
very different, with the amount that is taxable being relatively low. In some
cases, business deductions may actually make it look like your business is in
the red when in reality you are making a comfortable income. When you go to buy
a home or investment property, this can become a big liability. Many
traditional banks will look at your tax returns and give you a loan that is
significantly smaller than what you need or can afford. Or, even worse, you may
be denied a loan altogether based on your tax returns.
For many business owners, this can be a discouraging experience. You
spent years of your life building your business and your personal brand, only
to be told that it can actually be a liability. Do not lose hope. While many
traditional banks may have their hands tied, there are several Texas self employment home loan options and
programs that can help you get the home loan you need.
If you find yourself in the situation of needing a non-conventional loan
due to your self employment status, you need to get organized and find the
right company to help you secure your loan. Here are five things to consider
when you are in the market for a Texas self employment home loan.
Find a mortgage broker and private lending
company. Banks are hard to deal with. A mortgage broker will work for you to
find the loan that you deserve. A mortgage broker can help you even when a bank
has already said no because he has access to multiple lending institutions and
loan types whereas a bank can only give out its own loans. A private lending
company can also be useful because they can give private investments that banks
are not able to offer.
Get your financial ducks in a row. Make sure you
keep meticulous records and inventory to give a clear picture of what your cash
flow looks like.
Consider separating your business and personal
finances. This way even if your business is in the red due to expenses, your
personal income is intact. Pay yourself like you would any other employee. This
may mean that you end up paying more in social security taxes or personal
income taxes, but may end up being worth it.
Look into alternative loan types. Hard money
loans, adjustable rate mortgages, FHA loans, and private capital loans can all
be good options for Texas self employment home
Be persistent. You may hear no a few times
before you hear yes. Keep trying. The right loan is out there.
When you are ready to take the plunge and
learn the benefits of a Texas self employmenthome loan, call us at Level 4 Funding to get the process started.
Our knowledgeable and friendly staff can help you every step of the
way. You will be glad you called. We look forward to the day the title company
hands you your keys to your new home.
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027