No Result
View All Result
Military Families
SUBSCRIBE FREE
No Result
View All Result
 Military Families
SUBSCRIBE FREE
Military Families
No Result
View All Result

Self-employed? Here’s what you need to know about getting a home loan

Jessica Manfre
by Jessica Manfre
November 12, 2020
| SPONSORED
Self-employed? Here’s what you need to know about getting a home loan
ShareTweetEmailWhatsApp

Military-affiliated entrepreneurs who earn self-employment income face unique challenges when seeking a home loan. It isn’t impossible, but it will be what is considered a documentation burden.

Bryan Bergjans is Senior Vice President of Military Lending for Caliber Home Loans. He’s also a Navy Reserve officer, so he completely understands military life.

“Self-employed borrowers have different challenges when seeking mortgages. It is an administrative marathon for them to get home loans,” Bergjans said.

The reason for this is that self-employed borrowers must prove their business is stable, so that they can ensure you can pay your bills. They also want all of this documentation to demonstrate you have a proven track record of paying your debts.

Bergjans explained that they have to have audited documents by a certified public accountant, or CPA, which makes income checks take a little longer. He also said that some business owners will pay themselves through W2’s, but that it isn’t enough. The underwriter will still want to see a profit and loss statement along with tax returns.

“A lot of self-employed borrowers are misguided in the process because they don’t know they have to provide that stuff,” Bergjans shared.

He also explained that when seeking a home loan, you must have been self-employed and showing that income on your tax returns for at least two years.

“We want to see a two-year work history of you running your own business. Sometimes you can get approved in a year and a half if you’ve just transitioned from the military and may be in the same line of work, but otherwise, two years is standard.”

Bergjans also stressed the importance of showing finances that are organized and doing well. Without those two things, securing a home loan will be difficult. This means that the self-employed borrower needs to ensure that their income hasn’t fluctuated too much. Significant decreases in documented income could disqualify the borrower.

The borrower’s debt to income ratio must also be around 43% or lower. This is to ensure that all of your debts are actually manageable. Another thing a self-employed borrower should be mindful of is not writing off too much on expenses. This is because lenders will look at income after expenses are deducted, which could impact approval.

The VA handbook includes all things VA loans and there is a chapter specifically devoted to those with self-employment income. In that handbook, it implicitly says that the financial documents that the borrow presents must be sufficient for a loan underwriter. But regardless of whether the borrower does a VA or conventional loan, the requirements for documentation remain the same.

Bergjans had one last strong piece of advice for the self-employed military community: “Your income really matters. It’s really important that you make sure that your business is healthy.”

Though all the documentation may be daunting for those who are self-employed, it isn’t impossible. Caliber Home Loans has a dedicated team of professionals in their Military Lending division that are dedicated to helping you achieve your dreams of home ownership.

Visit https://www.caliberhomeloans.com for more information.

Read comments
Tags: Bryan BergjansCaliber Home LoansentrepreneursVA loans
Share48Tweet30SendSend
Jessica Manfre

Jessica Manfre

Jessica Manfre, LMSW is an author and freelance writer for multiple publications. She is a licensed social worker, earning her Master of Social Work degree from the University of Central Florida in 2020. She also holds a Bachelor of Science in Psychology from Northwestern State University. Jessica is the co-founder and CFO of Inspire Up, a 501c3 nonprofit promoting global generosity and kindness through education, empowerment, and community building. She is the spouse of an active-duty Coast Guardsman and mother of two. When she isn’t working, you can find her reading a good book and drinking too much coffee.

Related Posts

Air Force couple finds key to paying off debt
Money

Air Force couple finds key to paying off debt

13 hours ago
Military Families Magazine. Living paycheck to paycheck.
Money

How to save when you’re living paycheck to paycheck

4 days ago
Military Families Magazine. Financial resources for military families.
Money

Financial resources for military families

4 days ago
Budget tips for 2021 Military Families Magazine
Money

4 ways to get your finances in order for 2021

1 week ago
Military Families Magazine. Car insurance.
Money

Is refinancing your auto loan right for you? 

3 weeks ago
Military Millionaire Military Families Magazine
Money

These veterans turned into millionaires using skills learned in the military

4 weeks ago

Discussion about this post

Ads

Military News, delivered to your inbox

Get a free copy of MILITARY FAMILIES delivered to your inbox each month

Let's connect!

ABOUT US

  • OUR STORY
  • OUR TEAM
  • MEET OUR WRITERS

MAGAZINE

  • GET PRINT
  • GET DIGITAL

GET RESOURCES

  • MONEY GUIDE

ADVERTISE

  • GET OUR MEDIA KIT
  • CFC PARTNERS
  • PRICING
  • PUBLISHER’S STATEMENT

SUBMISSIONS

  • PITCH US
  • SUBMIT YOUR STORY
  • BOOK CLUB
Never miss out on the latest stories.
© 2020 Military Families by AmeriForce. Privacy Policy | Terms | Site by Swiss Commerce

Thank you for your interest in Military Families Magazine!

Thank you for your interest in Military Families Magazine!

Thank you for your interest in Military Families Magazine!

No Result
View All Result
  • News
  • Military Life
    • Deployment
    • Relocation
    • Military Spouses
    • Military Kids
  • Education
  • Career
    • Transition
    • Entrepreneur
    • Veterans
  • Health
  • Money
  • Travel
  • Get Resources
    • 2020 Military Money Guide
  • Giveaways

© 2020 Military Families by AmeriForce. Site by SCBW.