If you’re a real estate agent, an insurance agent, self-employed, or own your own business and haven’t been able to buy a house or refinance your current loan because of how much money you declare, then today’s topic is for you.
It seems like there are new programs and guidelines being introduced to the market almost every day, and that’s great news for you. In the past, if you were self-employed, the only way to show your income and be able to qualify for a home purchase (or to be able to refinance your property) was to show your past two years of tax returns. We would then take the average of those 24 months and come up with your income; these are, after all, your expenses.
This created a huge problem. For example, say you’re a trucker who makes $200,000 a year, but after depreciating your truck, paying for gas and meals, you would only end up with, say, $40,000. That means we would only use $40,000 to help you qualify for a home purchase. Now, with the way that the real estate market is—especially here in San Diego—there’s not much you can qualify for. That’s why the new self-employed program, which is based on bank statements, was introduced.
What’s so special about our self-employed loan?
First and foremost, it’s not based on taxes. We base your qualification on your deposits using your bank statements. Say that you get $20,000 a month—we use the average from 24 months, 12 months, or even just one month, depending on the program you qualify for. We don’t take your expenses or business deductions into account, just a percentage of your deposits.
Another thing about this loan is that you can come in with only 10% down, and you don’t need perfect credit. The loan can also go up to $2 million, and the debt-to-income ratio is higher than traditional loans.
This is just one of our newest home loans that we’ve rolled out, and we’ll have new ones coming out in the the next couple of weeks, to be discussed in future posts.
If you or someone you know someone needs a home loan to purchase a property, needs to refinance, or has any questions, you are absolutely encouraged to reach out to us. I’ll be sure to take care of you.