It is a myth that self employed buyers cannot secure a mortgage. In order for a self employed person to secure a loan, the most important things are consistency and resiliency of income. To prove this the main tool someone has is their tax returns. A lender will be looking for two years of tax returns. Therefore, a borrower should have two years of experience as self employed person. This shows that their income is a sustainable dependable source.
- While many assume that those that are self-employed are not good mortgage candidates, such is not necessarily true.
- As with any employed mortgage candidate, the trick is to show that one’s revenue stream is reliably steady and consistent.
- With no W2s to rely on, lenders must review the tax returns of self-employed mortgage candidates.
“Lenders don’t want to qualify you on the high or the low income – they want an average so that you can always comfortably afford your mortgage.”