Mortgage? If I go self employed will I have to live in a cardboard box?!?

Jokes aside ....that was not meant litterally so all you haters out there just calm down!

I am referring to the fact that being self employed proves not only hard work in itself but hard work in finding someone who will give you a mortgage...and in a way it's kind of understandable as the banks do not have a big company to lookup to if things go wrong they just have you .....little old you a human being that can and do make mistakes...

This being said its allso a risk on my there are troughs and peaks what if there is a bad few months for buisness you are not covered there is no insurance you and your Faimly would be kicked out on the streets...

Guess my question is has anyone been there done that? Would like to here some story's to get a general quite frankly I am considering in the future that if my buisness did get sucessfull to spend my money on buying either one of those static caravan homes or a boat to live on this more secure? Or do you still have to have a mortgage for that?

7 Answers

  • 7 years ago
    Best answer

    A self-employed person who has owned their business for 2 tax cycles, can get a mortgage just like any one else. The mortgage is based on the exact same criteria as anyone else.

    Additionally, if the self employed person can't find jobs and has no savings, they are exactly the same as a traditional employee who gets fired and has no savings = if you can't pay the mortgage, you don't get to live there for free.

    You aren't required to take a loan when you purchase a home, caravan home, or a boat, as long as you have enough money to pay in full at the time that you purchase it.

  • 7 years ago

    A LOT of Americans are self employed. It really isn't that much different. You will not have a problem getting a mortgage, you qualify based on income just like everyone else.

    You should do what everyone else does, keep a bank reserve with enough money to support your family for 3 months. Employed or not, everyone should have a rainy day fund. 3 months should cover most illnesses, etc. I used mine once, about 6 years ago one of my children was very ill. I moved into the hospital with her and earned very little money, my savings kept up afloat. If you have children you want to make sure there is also enough cash on hand that in the event of your death they would be OK until your life insurance kicked in. I am a single parent and I could not sleep at night if I did not cover that contingency for my angels.

  • 4 years ago

    It's not that hard, you just have to go to the right places. Lending Tree has more conforming mortgage lenders.You need to find a lender that does non-conforming loans and that have Niche programs. Go to your Yellow Pages or online and look up mortgage brokers in your town and state. Most of their ads will tell you if they do those kinds of loans. Just give some of them a call and tell them you need a stated self-employed or full doc self employed. They will know what you're talking about. There are many lenders with many programs for the self employed.I work for a major lender and I process them all day long. Good Luck!

  • 7 years ago

    "and in a way it's kind of understandable as the banks do not have a big company to lookup to if things go wrong they just have you .....little old you a human being that can and do make mistakes..." - That's all they have if you are not self employed.

    2-3 years of tax returns showing a steady income.

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  • 6 years ago

    Many self-employed people run into difficulty when it is time to buy or refinance a home with a bank because they typically write off a majority of business expenses on taxes. Even though they are pursuing the great American dream of owning a successful business, by limiting tax liability they are setting themselves up for headaches and frustration when they try to obtain a mortgage.

    Unlike most banks and brokers, we are one of the few banks in the Nation that does not require 2 years of tax returns, P&L's or K-1's. Our Portfolio programs allow you to qualify using 12 months of personal and/or business bank statements and you only need to be self-employed for a minimum of 2 years.

    As of Jan 1st "stated" loans are now dead in America, but we are still able to offer low rate/cost financing options to self-employed homeowners and home buyers. Helping families and businesses for over 70 years!


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  • 7 years ago

    You would provide 2-3 years of tax statements instead of pay stubs for income verification. No matter what big-ticket item you want to buy, they will still need income verification if you will be financing it instead of paying it full in cash.

  • 7 years ago

    30% down payment.

    3 years of tax returns showing steady income.

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