The Benefits of Using a Texas Private Lender for Your Self Employment Home Loan

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 a private lender 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 find a private lender like Level 4
Funding to finance your loan.

Pros and Cons of Using a Private Lender
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. A
private lender can have you funds in as little as 1-2 weeks with significantly
less paperwork.

·
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
loan.

·
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, a private lender is 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
borrower.