Mortgage & FHA Loan Programs for Self-Employed in California
If you are self employed you know how difficult it can be to verify your income. It may be the case that you have seen tremendous growth in your income over the last several months or years and this is not reflected on your tax forms or other financial documents. Does this mean you cannot get a home mortgage in the state of California? Not necessarily. There are banks and lenders that offer a home mortgage 12 month bank statement program for the self employed.
If you have a bank or checking account in the state of California and you can show bank statements illustrating your income trajectory this could be very helpful when it comes to getting a home mortgage today. Note that many factors will come into play when it comes to qualifying for the lowest possible mortgage interest rates. You may find that some lenders required a 70% loan to value (LTV) ratio and a 760+ FICO credit score. If this is a concern please understand there are alternative options such as an FHA home loan.
When looking to get the lowest home mortgage rates in Thousand Oaks, Westlake Village, Oxnard or Simi Valley, California remember it is best to shop around. If you do not have the time to do this we at ABLEnding have mortgage brokers that can do all the hard work for you. They can get your financial information and current life status and find the best possible mortgage program for you.
A 5/1 ARM might be a great option for some while others will want a 30 year fixed mortgage. Rather than trying to decipher all the financial terms and study the different home mortgage loan types allow us to do it for you. We can find a unique home loan program that allows you to borrow the money to purchase the home of your dreams.
If there is a specific mortgage loan you are looking for we can work with smaller lenders that may have a specialized product. We often encourage clients to also look into FHA home loans. This is a way to get a mortgage even if you don’t have the best credit score or a significant amount of money to put down on the home. You won’t have to worry about that 70% LTV nearly as much when it comes to an FHA loan.
There are a number of reasons some individuals may prefer to use a bank statement rather than other verification of income. Those that own their own business may not have proper documentation needed compared to an individual that works for a major corporation or business. Those that have not incorporated or created an LLC may have written off taxes making their income look lower than it actually is.
Rather than being concerned about not having enough money to qualify for the mortgage you are looking for we strongly encourage you to contact ABLEnding today. We will work to find the correct mortgage program that is right for your situation. We have worked with other banks and lenders that offer different types of self employed mortgage options to borrowers.
Filing Income Taxes in California for Self Employed
Anyone that lives in the state of California knows the importance of filing income taxes. Unfortunately, there are times in which taxes are not filed correctly or they are filed late. While we will need documentation and tax forms there may be some mortgage programs available that will get you started with simply a bank statement.
If you currently have $100,000 in your Bank of America, Wells Fargo, JP Morgan Chase, Citibank or SunTrust account that particular bank or lender will know your financial history much better than an independent mortgage lender or another small community bank. If you would like us to work one on one with a specific mortgage lender do not hesitate to contact us today.
As always, we would encourage you to file your state income taxes in California but understand that many of those self employed may have a number that is not representative of their true wealth or earnings. With some local community banks looking to build a customer base we may be able to find a lender that will be willing to work with you if you are self employed.