Author Topic: Business owner Mortgage documents / Qualification  (Read 718 times)

Offline Cares

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Re: Business owner Mortgage documents / Qualification
« on: July 30, 2021, 05:04:41 PM »
Short answer is no.

If you own the company, you need 2 years full W2 and tax returns as well. Reason being you could easily pay yourself a high amount in Q1 and stop all payroll completely at year end.

Many newly self-employed people fall into this problem of not qualifying for a QM loan because a lack of sufficient income history. The same actually goes for a W2 employee if they do not have 2 years of work experience. Sometimes even if you do have 2 years total work experience but only a few months at a new job in a new field the underwriter might deem your income to be instable.

The only way I can help borrowers is to help them finance into a QM loan with looser guidelines but higher interest rates and then target to refinance into a QM loan once the income history is solid. Other lenders may be able to help you but I think it will be very few that don't adhere to the 2 year income history.
« Last Edit: July 30, 2021, 06:37:10 PM by Cares »

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