Self-Employed Mortgage Borrowers Need 1 Or 2 Years Of Tax Returns?

March 11th, 2018

Self-Employed Mortgage Borrowers Need 1 Or 2 Years Of Tax Returns?

 

I constantly get questions about whether or not someone who is self-employed needs a minimum of two years of tax returns, or if they can get away with one year of them, when qualifying for a mortgage. I thought I would answer this question and put it to rest. Please realize guidelines can change in the future. As of the date of this blog, the hyperlinks below are guidelines related to the history that self-employed people need, and the number of years of tax returns they need to document their income. Read the rest of this entry »

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I Need To Be Self-Employed For Two Years?

September 25th, 2014

I had a potential client call me recently asking for a quote on an interest rate. She said she had been pre-qualified by someone else and just needed an interest rate quote. I asked her to fill out my pre-qualification form anyway and she agreed. It’s a good thing she did. I discovered that she was never Read the rest of this entry »

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Self Employed People Cannot Use Money From Their Own Business?

November 30th, 2012

The mortgage rule makers say that self-employed mortgage borrowers can’t use money from their business accounts for a mortgage, not without some explanation anyway. Why? It’s their money! You would think they would know best what to do with it. Yet, Fannie Mae and Freddie Mac say that they don’t want a self-employed mortgage borrower to use funds from their business bank accounts without some further analysis. There is the possibility to allow the withdrawal of funds from business bank accounts if the self-employed mortgage borrower’s accountant writes a letter stating that the withdrawal of funds from their business bank accounts “should not” adversely affect the operations of the business. Read the rest of this entry »

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