When Banks Say No.....We Say Yes
Options for Self Employed and 1099 Employees
There are several options available for Self Employed and 1099 Employees when choosing a mortgage product. Here are a few of the most common--
Bank Statement Loan
With this Mortgage, the lender uses 12 or 24 months of bank statements to determine income. The lender will take the allowable deposits and average it and that is your income amount. The amount that is allowed will depend on your industry and the lender.
Asset Depletion Loan
This loan is commonly used by retirees or business owners that have recently sold their business. They have large cash assets but no real recordable income. So the lender takes their total cash assets in Savings, Checking, Investments and Retirement Accounts and applies a factor to that. The result is the income on your application.
Self Employed for less than 2 Years
I have access to lenders that will issue mortgages for people who have been Self Employed for less than 2 years as long as they are in the same industry. If this is you, let's talk about your options.
Do You Qualify for More Mortgage on Self Employed Loans Than Traditional Loans?
One of the frequent issues I see is that a Mortgage Loan Officer will qualify someone for let's say $500,000 using their tax returns and doing a traditional conventional loan. However, on a Bank Statement Loan they may qualify for $700,000. So looking at your options is critical. I take a look at all the ways someone can get a mortgage and then you can decide which one fits your goals the best.
Getting Pre-Qualified
Since these loans are a bit more intensive with documentation, it is critical that you get pre-approved prior to home shopping. Call or Text me today at 801-792-1257 and set up a time for Consultation either in person or via zoom and find out your options.