Is it harder to get a home loan if you are self-employed?

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When you’re self-employed, getting a home loan is going to be a little more involved than if you were a salaried employee. There’s more paperwork, tighter qualifying rules, and you’ll need to show a stable income.

The good news is, it’s getting easier for you and 14 million other Americans who are self-employed to get approved. Recently, Fannie Mae released new guidelines that are a big plus for self-employed borrowers:

In certain cases, income documentation is being reduced from two years of federal income tax returns to one.

A new income calculation is being introduced for business owners with little or no history of distributions.

The new guidelines are more flexible in dealing with “moonlighting” or extra part-time jobs.

If you’re self-employed, talk to a local lender and learn more and better understand your options.

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