Home Loans for Self-Employed Buyers

It seems like self employed people sometimes have a bad rap when it comes to getting qualified for a home. They might have heard from other self employed peers of theirs that oh my gosh, the home loan process is a disaster. And I think it just depends on what lenders working the deal and how accustomed they are with working on self employed tax returns. For example, if somebody has a Schedule C or 1120s or 1065, there are items you can add back on. So it's not just the bottom dollar net income. Sometimes there are depreciation and business use of home business mileage that you can add back on and use as qualifiable. That right there is a big difference maker. Also, there are some little loopholes in the rules where if the person's had their business for at least five years, you might be able to get away with just the most recent one year's tax return. Usually it's the two year average. In this example, if it's 2022 and 2021 and 2021 was a down year, well that kind of waters down the 24 month average. But if they had the business for 5 plus years, we can drop the hitch on 2021. Just use 2022 and use a 12 month average. Could be a lot better calculation. And if worse comes to worse, we can flip the whole script and go with the bank statement loan. If for some reason there's just not enough income there to for a home loan, but then they don't have to go back and do a whole new application with a whole new lender and start back on square one, we can just pick up right where we left off on the normal loan flip to a bank statement loan, get their last 12 months bank statements and have them pre approved by the end of the day. That's the difference. Knowing all the options, having all the options and putting them to use for our hard working self employed borrowers.