Comments on: Mortgages for the Self-Employed – The Easy Way http://wealthpilgrim.com/how-self-employed-can-easily-qualify-for-mortgages/ WealthPilgrim.com - A Journey To Self, Health and Wealth Sat, 11 Feb 2012 14:42:35 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jessica Bosari http://wealthpilgrim.com/how-self-employed-can-easily-qualify-for-mortgages/#comment-5701 Jessica Bosari Sat, 03 Jul 2010 00:43:47 +0000 http://wealthpilgrim.com/?p=14769#comment-5701 I know a fisherman who had this problem. He paid next to nothing in taxes. Unfortunately that mean he could show next to nothing for income when he went loan hunting. The solution: He created an S corporation and let the corporation give him a paycheck. Then he became an employee and only had to show a few pay stubs. The corporation can still go after tax breaks and associated advantages without hurting his reported income on loan applications. I know a fisherman who had this problem. He paid next to nothing in taxes. Unfortunately that mean he could show next to nothing for income when he went loan hunting. The solution: He created an S corporation and let the corporation give him a paycheck. Then he became an employee and only had to show a few pay stubs. The corporation can still go after tax breaks and associated advantages without hurting his reported income on loan applications.

]]> By: Doug Warshauer http://wealthpilgrim.com/how-self-employed-can-easily-qualify-for-mortgages/#comment-5299 Doug Warshauer Sat, 05 Jun 2010 22:48:13 +0000 http://wealthpilgrim.com/?p=14769#comment-5299 Nice post. I especially like the end: "Banks have lending rules in order to protect themselves and you. If you get in over your head on a mortgage you can’t afford, everyone pays the price." Someone who is self employed (as I've been for 9 years) needs to be very conservative in taking out a mortgage because, in most cases, their income is less reliable than people who earn a salary. If your business declines, the last thing you want is put your home in jeopardy. Not only will this lead to a double problem in your personal life, it puts additional pressure on the business. Sometimes a business owner needs to cut back on their draw for a year or two in order to make sure the business has the capital to make it through a downturn. If you are struggling to meet the mortgage payments, you may be forced to pull money out of the business at the worst possible time. Given this risk, self employed people need to think very carefully about the mortgages they take on. Nice post. I especially like the end: “Banks have lending rules in order to protect themselves and you. If you get in over your head on a mortgage you can’t afford, everyone pays the price.”

Someone who is self employed (as I’ve been for 9 years) needs to be very conservative in taking out a mortgage because, in most cases, their income is less reliable than people who earn a salary. If your business declines, the last thing you want is put your home in jeopardy. Not only will this lead to a double problem in your personal life, it puts additional pressure on the business. Sometimes a business owner needs to cut back on their draw for a year or two in order to make sure the business has the capital to make it through a downturn. If you are struggling to meet the mortgage payments, you may be forced to pull money out of the business at the worst possible time.

Given this risk, self employed people need to think very carefully about the mortgages they take on.

]]> By: Belmont Thornton http://wealthpilgrim.com/how-self-employed-can-easily-qualify-for-mortgages/#comment-5289 Belmont Thornton Sat, 05 Jun 2010 08:17:11 +0000 http://wealthpilgrim.com/?p=14769#comment-5289 Nice informative and interesting article. Maintaining financial statements and achievements in your business is necessary to get the best deals.Show your proper income statements. Nice informative and interesting article. Maintaining financial statements and achievements in your business is necessary to get the best deals.Show your proper income statements.

]]> By: zach zimmerman http://wealthpilgrim.com/how-self-employed-can-easily-qualify-for-mortgages/#comment-5282 zach zimmerman Fri, 04 Jun 2010 20:58:01 +0000 http://wealthpilgrim.com/?p=14769#comment-5282 One more thing. I like the idea of putting a higher income/higher taxes. The government would not mind that! One more thing. I like the idea of putting a higher income/higher taxes. The government would not mind that!

]]> By: zach zimmerman http://wealthpilgrim.com/how-self-employed-can-easily-qualify-for-mortgages/#comment-5281 zach zimmerman Fri, 04 Jun 2010 20:56:43 +0000 http://wealthpilgrim.com/?p=14769#comment-5281 I was thinking of starting a home based business and this article has certainly brightened up my day. I also just bought a home too. My bank even told me to not become self employed unless I have to. They see self employment as unstable. Its true banks are very picky right now with loans and mortgages. I was thinking of starting a home based business and this article has certainly brightened up my day. I also just bought a home too. My bank even told me to not become self employed unless I have to. They see self employment as unstable. Its true banks are very picky right now with loans and mortgages.

]]> By: Mrs. Accountability http://wealthpilgrim.com/how-self-employed-can-easily-qualify-for-mortgages/#comment-5278 Mrs. Accountability Fri, 04 Jun 2010 15:51:49 +0000 http://wealthpilgrim.com/?p=14769#comment-5278 Your article made me think of something that hadn't occurred to me. My husband is self-employed but his net is still quite low due to all the driving he has to do. We've been wanting to refinance our home, and it looks like until his net income increases, the bank is going to look at my income alone. Not that that is a problem, I just hadn't realized it. Also, I loved reading your personal finance story. Sorry you had to go through that, sounds like it was pretty rough. It would be tough to lose one's parents but it sounds like you made the best of things. Your article made me think of something that hadn’t occurred to me. My husband is self-employed but his net is still quite low due to all the driving he has to do. We’ve been wanting to refinance our home, and it looks like until his net income increases, the bank is going to look at my income alone. Not that that is a problem, I just hadn’t realized it. Also, I loved reading your personal finance story. Sorry you had to go through that, sounds like it was pretty rough. It would be tough to lose one’s parents but it sounds like you made the best of things.

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