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?

**Super Kate Tip: Know your credit score!
Free Credit Score - See yours at CreditReport.com!**

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.

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.

Best Wishes,

UNIQUE Home Buying Help

Make your home buying a snap with the Home Buying Scorecard.

Do you know this about Fixer Upper Houses? Toilets determine the age of a house and other tips.

Private Money Lenders because rural properties need special consideration.

Low Down Payment Mortgage - The dilemma of a low down payment.

Start your wealth building now by buying a foreclosed home.

The First Time Home Buyer Credit could be yours even if you have previously owned a home.

Learn the differences between Residential Construction Loans - Mortgages designed for building homes.

When private mortgage financing originates between family members, property tax and mortgage interest deductions frequently come into question.

First Time Home Buyer Advice - You decided to buy a house! What's next?

Stories From Home Buyers - Meet Kate's home buying visitors who tell their stories and give advice for buying a house.

Ask Kate About Home Buying - Ask a question to get an answer from Kate.

How To Buy A House Q and A - A complete collection of questions about home buying, each with a individual answer from Kate

Return from Self Employed Mortgage to Get-Your-Best-Mortgage-Rate