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As a small business owner I am concerned that my Net income after all our deductions looks very small and lenders will not loan us money for a mortgage. How do lenders qualify the self employed? |
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Hi Kelley; thanks for your question! If you're newly self-employed, you may have to wait until you have two years' worth of tax returns to look at. But beyond that, though, you're right, since everything you deduct is in full view and counts against your income. Not having W-2's to fall back on is also an issue. But to answer your question, the criteria are likely very similar for employees and for self-employed: credit rating, debt to income ratio, types of debts, etc. The likely stumbling block, as you've suggested, is income. |
