Self Employed Mortgage

by Corporation Owner Buying A House

Regarding a self employed mortgage, I have a question about self employed vs 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?

---

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

I let her know typically anyone owning 25% 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. But because mortgage guidelines vary, remember to ask your home loan representative 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.

Take a moment to bookmark Self Employed Mortgage to your favorites and visit often for more tips on buying a house. You can also invite friends to comment on this page or ask another question of their own like you did.

And visit this page How To Buy A House to see more letters contributed by Readers just like you!

Best Wishes,

Click here to post comments.

Join in and write your own page! It's easy to do. How?
Simply click here to return to Ask Kate About Buying A House.

Follow My Blog
Free and easy!