Mortgage Moment - Self Employed

Michael Holigan: Today's episode is for people who are self-employed. I'm self-employed myself. Qualifying for a loan is just a little bit different, but not that much. Let's go over the different ways to be self-employed and how it works for you. If you're a sole proprietorship the documentation you're going to need is two years personal tax returns, the same as everybody else, a currently P & L for your company, plus a current balance sheet. They're going to need to see that, even if it's hand written, go ahead and write it out, bring it in. Qualifying used is your average income plus for the previous two years. They want to see that you've been making this much income in the past and that it will continue. A little bit different for partnerships. One, two years personal tax returns the same, current P & L the same, they also need to see your K1, plus the partnership returns for the last two years. Qualifying used is average income, again, previous two years. If you're a corporation, little bit different. Two years personal tax returns, plus two years corporate tax returns, the current P & L, the current balance sheet. Qualifying used is your base salary. As long as all of your returns support this and you're covered by it. Now it's a little bit more work, a little more paper that you have to gather together, but they do need all of this paperwork. Go ahead and get it and you can qualify for a house self employed.

Episode 018 1995 - 96 Season

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