If you are self-employed, you probably already know that securing a home loan may be more difficult for you than it is for other people. However, getting a home loan as a self-employed person is not impossible.
How the Self-Employed Get Home Loans
Essentially, securing a home loan as a self-employed person is the same as securing any other home loan. You will need to provide proof of income, save for a down payment and show that you have enough cash on hand to cover your expenses for a set period of time. As is true with all home loans, it is better if you have a good credit score of 720 or above.
However, there are a few differences between a self-employed home loan and a regular home loan. First, you will need to show your income with tax returns, as opposed to using “stated income.” Although this may seem more difficult, it actually just means that you will need to track down different pieces of paperwork.
Second, you may need to demonstrate that you have more cash on hand than a person applying for a regular home loan. This requires some advanced planning on your part but, as a self-employed person, it will help you get the home of your dreams.
