The lender will then earn an average income. Self-employed people usually file income tax forms to document their income for a home loan. The lender will then calculate the average income for the past two years and divide that annual income by 12 to get an average monthly income. However, knowing how to calculate self-employed people's income for home loans will place you in a better position to provide the necessary documentation and get approved more easily.
Are you self-employed and want to know how much you could borrow with a mortgage? You are in the right place. Our mortgage calculator for the self-employed will show you how much you could borrow in a mortgage. Loan officer Kevin O'Connor has more than 17 years of experience as a mortgage loan originator and is authorized by the State of California and the National Mortgage Licensing System. Follow these steps on how to get a mortgage when you're self-employed, and you're likely to get the mortgage you need to buy your home.
As you can see, getting a mortgage when you're self-employed is very similar to getting a mortgage as a 9- to 5-year employee, but with the exception of documenting your income. Self-employment means that you'll have to prove your income differently than people employed full time who apply for a mortgage do. Michael has extensive knowledge of mortgages and finance and has been writing about mortgages for almost a decade. If you're self-employed, it's always a good idea to hire a specialized mortgage broker, someone who has a proven track record of obtaining mortgages for people in the same situation as you.
Before you commit to working with a mortgage company, make sure you've done your research on both the mortgage company and the loan officer. Getting a mortgage when you're self-employed may not be as difficult as you think, as long as you work with the right mortgage company. Self-employed mortgage borrowers can apply for the same loans “traditionally employed borrowers can do it.” A mortgage calculator for self-employed workers uses the information you enter to calculate what your mortgage payments might be based on your income.