Mortgage Loans for Self Employed
A lot of people in the Chicago area are self employed, and if you’re one of the many who are trying to obtain Chicago mortgage loans for self employed individuals, I have good news and advice for you!
What’s the scoop on Chicago mortgage loans if you’re self-employed?
Mortgage loans for self employed individuals can be challenging. Most self employed individuals tend to write off as much as possible to minimize paying taxes. Writing off business expenses and utilizing as much deductions as possible is one of the many advantages of being self employed due to the fact that you get away with paying a lot of taxes. Unfortunately, Chicago mortgage loans for self employed individuals get very challenging due to the lack of income.
Chicago Mortgage Loans for Self Employed: Think Taxes First
Mortgage loans for self employed workers are calculated by tax returns. A mortgage lender will go off what the self employed worker has filed for income on their tax returns. Mortgage lenders require two years tax returns and will average the two years income from the tax returns. If the latter year income is greater than the previous year, the two income off the tax returns are averaged. If the latter year income is less than the previous year’s income off the tax return, the mortgage lender will use the lesser income amount.
Lenders who specialize in mortgage loans for self employed borrowers
If you own your own business or are self employed and are looking to purchase a home and are seeking a Chicago mortgage loan, please consult with a mortgage broker who specializes in mortgage loans for self employed individuals. I specialize in mortgage loans for self employed individuals in California, Illinois, and Florida. Tax returns are interpreted differently by each mortgage lender. Some lenders will add depreciation from the Schedule C back to income. Some lenders will consider rental income as part of your income. Others will only take 75% of your rental income as additional income.
How to Get Chicago Mortgage Loans Fast if You’re Just Starting Out
For those self employed folks who started a new business and had a stellar recent year but the previous year was not so hot, I have mortgage lenders that will go off on one year’s tax returns instead of two years. If a self employed individual has sizeable assets, I have mortgage lenders that will take 4% of the liquid assets as income and can boost their monthly gross income. For example, if a self employed individual has $500,000 worth of cash and stocks, we can use 4% of the $500,000, or $20,000 as additional income.
Again, I specialize in mortgage loans for self employed individuals and if you have any questions, please contact me at 262-716-8151 or email me at email@example.com or you can visit us at www.gustancho.com.