Self-Employed Face Mortgage Challenges

: Chris Lee Law Firm

  Filed under: Mortgage

self employed mortgagesThose who are self-employed should consider themselves lucky in many ways. This tough economy has not been nice to corporations, let alone small businesses, so those who are fortunate to still turn a profit are doing very well overall. However, the self-employed do face additional challenges that most employees do not.

Tax concerns, medical insurance difficulties and trouble securing private loans are all common issues that the self-employed face. One issue that has recently gained more attention is the stubborn mortgage lending practices applied to the self-employed, causing many to be left out of the market or with fewer loan modification options when trouble strikes.

Tough Day At The Lending Office

Purchasing a home, refinancing a mortgage or securing a foreclosure alternative plan are difficult for most consumers these days. However, the self-employed are really feeling the pressure when it comes to securing a suitable mortgage agreement. Why?

Banks have bumped up their qualification requirements and are requiring more documentation from applicants. Since the self-employed tend to holdĀ  more variable revenue streams and financial histories, lenders tend to view them as more a risky borrower than a traditionally employed consumer. Whereas most banks require proof of income for the last year in most applicants, the self-employed may be required to provide two or more years of income history in order to secure the same loan.

 

 


Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Foreclosure
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information