Self Employed Mortgage

by Corporation Owner Buying A House

Regarding a self employed mortgage: Kate, I have a question about self employed versus being an employee of a corporation that you own. In applying for a mortgage do I have to furnish business bank statements and tax returns?

I receive compensation with taxes taken out as do all the other employees. In applying for a loan wouldn't I just supply proof of my income and personal bank statements?

Kate Answers: Self Employed Mortgage

Dear Corporation Owner, A shocked employee once asked me the same question as she was processing a mortgage application with tax returns from a business owner.

"Kate, My husband and I never disclosed during the mortgage process that we own our corporation. We only supplied W2's and pay stubs. Did we unknowingly commit fraud?"

I let her know typically anyone owning 25 percent or more of a business will be considered a candidate for a self employed mortgage. That means tax returns, profit or loss statements, balance sheets, and business bank statements may be required.

Tip: Because guidelines vary, ask your home loan professional about your specific mortgage program.

For a helpful list of documents needed to complete a mortgage application, use my free Mortgage Information Planner. It saves time, money and headache to get your ducks in a row!

I have provided links to more tips for buying a house below for your convenience. After reading through the pages, please let me know if you have more questions.

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Best Wishes,

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