The United States government hands out plenty of benefits to the self employed. They are able to write off many expenses off, enjoy newly-created tax breaks, and also get access to more government programs by being a business owner. Despite these points, the self employed have problems getting a mortgage loan.

If you do your own taxes, make sure that you are preparing your taxes correctly each year. Having a clean set of records is mandatory in order to qualify for a self employed mortgage loan. As such, you should have already saved every receipt and document relevant to your business for the past couple of years in order to qualify.

The typical FHA mortgage lender will demand that the applicant has at least two years of income proved in the form of tax receipts. Some may be able to get by with only a year’s worth of receipts, but only if they have shown that the income is excessive and stable. Lenders may make judgments on the future outlook of the business to make a decision as well.

Oddly, lenders like to judge your business credit score as well as your personal credit score when deciding on approving your application. Most new businesses will have a score of zero or a rating that isn’t much better, simply because it takes time to build credit. This simple fact is what causes most application denials to take place, and is hard to circumvent.

Having a friend co-sign will greatly increase your odds at getting approved. In fact, many cases of self employed loan applications show that the applicant has a co-signer handy just in case. This is because lenders don’t like giving out loans to the self employed, and when possible, they will try to get the applicant to agree to a co-signer. The person is partially responsible, so finding one might be a lot harder than you would think.

Start looking at the services of mortgage brokers. Brokers are able to find different types of loans based on your current situation- and in minutes! It’s great because in what would otherwise be hours or days of traveling from lender to lender, a broker can get an approval in a fraction of the time. Mortgage brokers do commonly charge a fee, but most of the time the money saved in using them will offset the brokerage fees that they tack on to the mortgage.

Final Thoughts

Don’t let being self employed drag you down. You can still get an FHA mortgage loan if you put all your effort into it. Keep up the pace, look into a mortgage broker, and odds are you will either find a quick solution or a plan to get a mortgage within months.

Learn more about fha mortgage loan and self employment mortgage.