Self Employed or Know Someone Who Is?

Self Employed…or Know Someone Who Is?

Prior to the big bubble burst, self employed buyers had many programs to choose from, some of which were totally outrageous? Back in the day I used to be a Mortgage Underwriter, and I remember I kept saying, how are these Underwriters approving these deals? State income loans were very prevalent, those were the type of loans where the buyer simply told their Loan Officer how much they made and they literally did not have to document anything. These were very scary loans and ended up having a lot foreclosures after the bubble burst.

Because of this, the pendulum affect kicked in and underwriting standards overly corrected and it became nearly impossible for years for a self employed buyer to get a simple loan without having an over abundance of documentation that was required. It basically locked out many buyers from being able to purchase a home.

Good news is that the underwriting standards are beginning to come back to center and we are seeing more self employed buyers being able to purchase homes again.

Self Employed buyers make up nearly 10% of the nations work force and actually earn more than a W-2 employee. They also had a higher rate of home ownership than salaried individuals. The thing that underwriters are looking for now is stability of income. Self Employed buyers tend to have more volatility in their income so the underwriter will be looking at cash reserves that might carry a self employed buyer through a tough period of their business as well as other factors to make sure the buyer is set up for success in home ownership.

Bottom line, if you are self employed and you have been wanting to sell your current home and buy another one or even if you are a first time home buyer, now might be the time to get that mortgage. We have several mortgage lenders that we work with and would be happy to refer you to someone who is a specialist in this area.

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Dawn Heilbrun, Owner
The Heilbrun Home Team
John L. Scott, Orting
Www.HeilbrunHomeTeam.com
Www.orting.johnlscott.com
Dawnh@johnlscott.com
253-307-6438