View Full Version : Mortage for self employed

07-20-2016, 04:39 AM
Hey all, I am daycare owner/ parent. I have one doubt. Does anyone know more details about mortgage for self employed. I heard that down payment rates varies according to the returns you have filed. I read this blog about a new change in downpayment rule https://www.butlermortgage.c a/mortgage-news/mortgage-down-payments-different-but-not-so-bad/ According to the information provided here the down payment varies according to the total value. So does that means that there will be changes for entrepreneurs too. I heard that the downpayment is 15% if you have just started your business. With the new rule will there be any change in this?

07-20-2016, 08:21 AM
Mortgage loan like other loan base on income. More you earn, more you can borrow, more chance you able repay.

When self-employ, your income is your profit not your business income. Lot provider's think when they charge $38.00 fee that is their income but it not. The income is the fee less business cost = profit. Because we able claim lot of expenses, we able get taxable income low but this is what lender will base loan on.

For lot self-employ people actual income is too low for mortgage unless their partner earn good income. It not surprise me if there new rules about new self-employ people because many new business fail in first 2 year.

5 Little Monkeys
07-20-2016, 08:18 PM
I've been told you need (should?) have your business for 3 Yeats before they'll even consider you a reliable client to give a loan too. I'm sure it will differ though with various lenders