Compare Mortgage Quotes

Guest

what guidelines lenders follow while looking at employment and income of a self employed person and also please mention the kind of documents i would have to show if i have a sole proprietorship business.

blue · Posted: Thu Mar 08, 2007 11:43 am Post subject:

Hi Millidge,

Welcome to Mortgagefit discussion board.

A lender would normally require you to have:

2 years of self employment. Some lenders would accept less than 2 years also if you had previous employment of at least 2 years or a combination of formal education or training in a related occupation and 1 year's employment. But any self employment which is for a period of less than 1 year generally will not be acceptable by lenders.

Twenty five percent or more ownership rights in a business.

2 years of minimum average income for determination of your qualifying income. Such a process is followed to even out the variations common to income levels of a self employed borrower.

Good prospect of growth and stability in your business field which would help you in meeting your loan obligation in the long run.

Thanks
Blue

Guest

You have asked about the documents that need to be provided for a sole proprietorship business.

Lender would require you to provide Form 1040 with all applicable schedules attached along with it, Schedule C (Profit and Loss from business), Schedule D (Capital Gains and Losses), Year-to-date profit & loss statement and balance sheet.

Guest

Thanks for the help, please if possible also give some information on what are siva and sisa loans.

carnahandavid · Joined: 21 Dec 2006 Posts: 238 58.41 Dollars($)

mcole · Posted: Thu Mar 08, 2007 1:03 pm Post subject:

If you go with a SIVA or SISA type loan, typically you would not need to provide a 1040, Schedule C, or other tax information. However, you would still need to provide a copy of your business license, a letter from your CPA, or something of that nature to verify the length of time in business.

Also, be aware that the guidelines on these types of loans have been changing dramatically over the past couple of weeks. And they are getting tighter for everyone.

Cool

emjeyband · Joined: 19 Mar 2007 Posts: 1 1.24 Dollars($)

If you go with a stated deal, which it will probably be, you will need an accountant's letter / CPA Letter.

sara

Hi Millidge,

The State Income, Verified Assets loan is offered to borrowers having poor as well as excellent credit. The minimum credit score for qualifying for such a loan is 500.

In most cases, the credit report of a borrower may reflect a 90 day late payment. In addition, the borrower should have minimum of 2 months of monthly payments (PITI) on principal, interest, tax and insurance as the cash reserves. But in order to qualify for a higher loan amount, one should have at least 6 months of monthly PITI payments as cash reserves.

Thanks,

Sara

Property State:
Property Type:
Credit Rating:

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

mortgage for a self employed