How to Get a Mortgage when Your Self Employed

http://MortgagesInVancouver.com
I wanted to do a blog that I know is probably going to get a lot of hits, because there's a lot of you out there. That is, self employed people: What are your options? Are there any special benefits? Are there any things that are going to be holding you back, being that you're self employed? Well, there's actually quite a few benefits for being self employed, but there's also things, for those of you who don't like to declare income, obviously that is something that is going to stand in your way.
They actually allow you to take 15 percent of your line 150 income, and add it back. So, that's giving you 15 percent more than what you would have otherwise had. So, that's kind of a nice benefit of being self employed.
When you're self employed, there's also programs out there that are called stated income programs for self employed people. Now, why do they allow you to just state your income? There's always a list of different criteria that you have to meet, depending on which mortgage insurer, and which lender that you go to. But basically, again, when you're self employed, the government understands that a lot of times you reinvest money into the business. You do have all these write offs.
What deems reasonable? Well, they've got their websites and economic... Different graphs and charts, and for each different industry and profession, it gives them a variance of what is a reasonable income to assume, based on your profession and career that you're in, being self employed.
So, they look at that. If that seems reasonable, whatever it is that you're declaring, then you can use the stated income programs. But, definitely check my blog to see what these stated income programs are, especially right now, 2010, as of April 9th and April 19th, a lot of changes are happening with that stated income program. So, give me a call directly, or email, or check my blog if you want the most up to date information on that criteria, but it's probably just easiest to call me, and I can let you know if you qualify for that. That's a nice benefit, as well.
Here's another great thing. A lot of people get worried... "Oh, no. I just started my business," or, "I've only got one year in. I'm making money, but it's only one year. I know the banks, they want two years. What can I do? Are my hands tied? Can I still get a mortgage?"
Yes, you can. What the banks are wanting is a two year industry average. So, for example, if you worked in a mechanic for five years, ten years, one year, whatever the case may be, and you worked for somebody, and then you decided to branch out and become a mechanic on your own as a self employed individual. If you have two years together as an industry, then they'll take that average. It's kind of nice, huh?
So, even for all you people who are all like, " You know, oh no, I've just become a real estate agent. I don't have much under my belt." But, if you were doing something related to real estate before, you can get a mortgage. If you were in sales, and now you're doing contract work. Web designers are big for that. They worked for a company, and now they're just contracting themselves out. They're self employed.
If you have two years in the industry, you're not going to be left out in the cold. You can potentially qualify for a mortgage. What they're going to do, probably, is just take an average of whatever those two years were.
All right, those were some nice benefits of being self employed. Some of the downsides, though, are for those of you who, you know who you are... You don't like to declare income because you like to save on taxes. Perhaps you only pay yourself minimum wage in the company, and it's because you want to save tax.

http://MortgagesInVancouver.com

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• vancouver mortgage broker
• self employed benefits
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• income tax
• declare income tax
• down payment for self employed
• self employed programs
• lenders
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[dynomax666]

that title should read "How to Get a Mortgage when YOU'RE Self Employed". You lost a little credit with me.

[ackilla86]

Whats that green thing on ur head?

[BeautyFinish]

Does every bank offer the stated program? Why didn't my bank use it? They told me i had to show more gross income in order to get a mortgage