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.