Recently my team came across a very complicated . Our client is self-employed with a new business that they started two years ago. The keyword “difficult”, not impossible. The client had numerous layers to his business surrounding his pay structure and tax filings. We had many discussions and cooperation with the client’s CPA. Lets just say we had our work cut out for us. Most lenders would look at this file and dismiss and/or decline. If you are self-employed and have only had your business for a couple of years or have complex business filings for tax purposes, can make it feel almost impossible to get approved for a mortgage.
But even with all these factors up against us we were still able to get our client approved! He was able to refinance his home and save money on his monthly mortgage payment.
All too many times you hear horror stories about people not being able to get a mortgage, if you are self-employed and/or at your job for less than two years. I feel you should always ask, check your options, meet with a strong lender and don’t always walk away if a lender says they can’t help you. There might be one who can. Now this is not always true and it does vary on each individual’s situation but don’t you think its worth asking? Never assume you are not eligible for a loan without taking the time to find out more information and calling around to other lenders.
Make sure to fully disclose your complete situation, your lender needs to know if you have had a foreclosure, bankruptcy, defaults on any student loans, etc. Especially when you are self-employed because the income used to qualify you is based off lending guidelines, not IRS guidelines, so give your lender the tax returns and let them do their thing. These are very important circumstances that will eventually come up later in the loan process if you choose not to disclose upfront. And they can prevent you from qualifying for a loan. So it is best to put everything out on the table so your lender knows how they can help you.
The point of sharing this story is so you can take this information and use it for yourself or pass it along to someone you know that this would be helpful for. If you are unfamiliar with what a VA Loan is and if it is right for you, take some time to research this amazing loan program for eligible Veterans. And as always, if you have any questions please contact us, we are always here to help.
Until next time~