SELF EMPLOYED LOANS DURING COVID

July 25th, 2020

COVID

Newly revised mortgage guidelines for self-employed people due to the Covid-19 pandemic:  There are temporary requirements for assessing income derived from self-employment.  The additional due diligence is due to the disruption from the pandemic.  Mortgage lenders now need to consider if and how a business has been impacted and the likelihood of income continuance.

There is additional income documentation required and you may need an audited Profit & Loss statement with supporting documentation for the Profit & Loss statement.  The continuity and stability of income is what will be considered.

It can take quite a while for an accountant to put together an audited Profit & Loss statement, so it should be started at the very beginning of a loan application.

When a self-employed borrower has declining income from one year to the next or from the last year to the current year, this could be an obstacle in getting a mortgage.

Please contact me or start the pre-approval process to determine if you’re self-employed income is sufficient to get approved for a mortgage.

Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.​

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