Self-Employed 12-24 Months Only Georgia Mortgage Lenders
Most the self-employed work-force doesn’t get paid on a regular schedule, have W-2’s or ideal tax returns (1040’s) to qualify for the mortgage they’d like. However, they’d still like to be homeowner’s. So, if you’re one of those millions of Georgia Self Employed borrowers out there who’s income varies throughout the year, this is the loan for you.
Georgia Self Employed Only 12 Months Georgia Mortgage Lenders
- No 2 Required No Tax Returns Required
- No Rental History Required!
- Loan Amounts from 150K to 3.0 Million
- ARM’s and Fixed Loans
- Down Payments Start at 10%
- Purchase, Rate/Term and Cash-out Refinancing
- SFR, Condo & 2-4 Unit Properties Allowed
- Gift Funds Allowed on Non-Owner Occupied
- No Tax Returns Required
- 50% Max Debt to income ratios Max!
Length of Georgia Self-Employment
- Georgia mortgage lenders generally requires a (2) two-year history of the borrower’s prior earnings as a means of demonstrating the likelihood that the income will continue to be received.
- However, a person who has a shorter history of self-employment — 12 to 24 months Georgia self-employment income — may be considered, as long as the borrower’s most recent signed federal income tax returns reflect the receipt of such income as the same (or greater) level in a field that provides the same products or services as the current business or in an occupation in which he or she had similar responsibilities to those undertaken in connection with the current business. In such cases, the Georgia mortgage lender must give careful consideration to the nature of the borrower’s level of experience, and the amount of debt the Georgia self-employed business owner has acquired.
GEORGIA SELF EMPLOYED CAN NOW USE BANK STATEMENT ONLY MORTGAGE LENDERS
If you are self-employed then you already know that Bank Statement income Georgia self-employed loans is a very tough loan to get depending on what you are trying to do. A Bank Statement only mortgage loan to very income uses your bank statement only to verify income. This is ideal for Georgia Georgia Self Employedborrowers that do not show much income on their tax returns and do not have rental income.
In Georgia, you need to find just the right Georgia mortgage lenders who knows how to get the best Bank Statement only income loans for Georgia Self Employedmortgage applicants with no rental history. If you are a self-employed Georgia mortgage applicant you will have your own set of issues in documenting your income that other w2 borrowers will not have. Our professional Georgia Self Employed expert Georgia mortgage lenders can help you with your Bank Statement only income loan with no rental income and get your Georgia dream house. Don’t let the fact that you don’t have a W2 job and no rental history stop you from getting into the home of your Georgia dream home!
Call us today and one of our Georgia Self EmployedGeorgia mortgage lenders will be able to help you determine your income and expenses and apply for a bank statement only loan within your means You have already started a successful business, take it the next step and move your family into a wonderful home.
HOW GEORGIA SELF EMPLOYEDARE GETTING APPROVED FOR A GEORGIA MORTGAGE?
When you are buying a Georgia home, or seeing a Georgia refinance mortgage, there are clear cut requirements to get approved for all mortgage applicants. First, you must fill out a full mortgage application. Georgia mortgage applications will require information regarding your Cash down payment annual income, including your savings, and your debts; as well as your Georgia self-employment history and a record of where you have lived the most recent 2 years. Once completed, your application is given to Georgia mortgage lender. Your Georgia mortgage lender will review the information provided, making requests for clarifications on the documentation you provided. For instance, if your bank accounts show an abnormal, large deposits made within the last 60 days, your Georgia mortgage lender may ask for verification of the deposit’s source. You may also be asked to provide other documentation, too, at the Georgia mortgage lender discretion. The Georgia mortgage lender task is to verify that your loan meets the minimum qualification standards set forth by the Georgia mortgage lender. This process of review is called Georgia mortgage loan approval. It’s only after Georgia mortgage approvalis completed that the loan can be issued a “Clear-to-Close,” meaning that your application, indeed, meets the Georgia mortgage lender requirements. You will close on your home shortly thereafter. However, the Georgia mortgage lender approvalprocess differ from applicant-to-applicant and loan-to-loan. The documentation required by an underwriter is different for every mortgage borrower. For self-employed borrowers, these documentation requirements can seem onerous. Besides the typical requests for bank statements and credit reports, self-employed borrowers are required to show federal income tax returns and additional documentation which presents the vitality of their respective businesses. Recently, though, self-employed Georgia mortgage applicants are getting new options to document income. Georgia mortgage lenders are now allowing 12-24 months bank statements to document the borrowers ability to pay.
GEORGIA SELF EMPLOYED ARE NOT GET APPROVED MUCH EASIER- There are now over 15 million self-employed borrowers, it’s getting a lot easier to get approved for a new Georgia mortgage. Recently, Fannie Mae issued new loan guidelines related to self-employment income. Some of the highlights include a documentation reduction from two years of federal income tax returns to now only 1, in certain circumstances a new income calculation for business owners with little or no history of distributions. The fannie mae guidliness for new loan guidelines are also more friendly towards moonlighters. Borrowers with self-employment income from a secondary, non-salaried business are no longer required to show proof of income if they are qualified based on the income from their salaried job. Persistently better today mortgage rates continue to remain stronger south of four percent. It’s an excellent time to shop for a mortgage.
Verification of Income- The lender may verify a self-employed borrower’s employment and income by obtaining from the borrower copies of his or her signed federal income tax returns (both individual returns and in some cases, business returns) that were filed with the IRS for the past two years (with all applicable schedules attached).
Alternatively, the lender may use IRS-issued transcripts of the borrower’s individual and business federal income tax returns that were filed with the IRS for the most recent two years—as long as the information provided is complete and legible and the transcripts include the information from all of the applicable schedules. (See B3-3.1-06, Requirements and Uses of IRS Request for Transcript of Tax Return Form 4506-T.)
When two years of signed individual federal tax returns are provided, the lender may waive the requirement for business tax returns if:
- the borrower is using his or her own personal funds to pay the down payment and closing costs and satisfy applicable reserve requirements,
- the borrower has been self-employed in the same business for at least five years, and
- the borrower’s individual tax returns show an increase in self-employment income over the past two years.
For certain loan casefiles DU will issue a message permitting only one year of personal and business tax returns, provided lenders document the income by:
- obtaining signed individual and business federal income tax returns for the most recent year,
- confirming the tax returns reflect at least 12 months of self-employment income, and
- completing Fannie Mae’sCash Flow Analysis (Form 1084) or any other type of cash flow analysis form that applies the same principles.
Analysis Personal Income- The lender must prepare a written evaluation of its analysis of a self-employed borrower’s personal income, including the business income or loss, reported on the borrower’s individual income tax returns. The purpose of this written analysis is to determine the amount of stable and continuous income that will be available to the borrower. This is not required when a borrower is qualified using only income that is not derived from self-employment and self-employment is a secondary and separate source of income (or loss). Examples of income not derived from self-employment include salary and retirement income.
The lender may use Form 1084 or any other type of cash flow analysis that applies the same principles as Fannie Mae’s form.
A copy of the written analysis must be included as part of any loan application package that the lender submits to Fannie Mae for a mortgage that is selected for a post-purchase quality control review.
Analysis of Georgia Borrower’s Business Income
When a Georgia mortgage applicant is relying upon self-employed income to qualify for a mortgage and the requirements that permit the lender to waive business tax returns are not met, the lender must prepare a written evaluation of its analysis of the borrower’s business income. The lender must evaluate the borrower’s business through its knowledge of other businesses in the same industry to confirm the stability of the borrower’s business income and estimate the potential for long-term earnings.
The purpose of this analysis is to:
- consider the recurring nature of the business income, including identification of pass-through income that may require additional evaluation;
- measure year-to-year trends for gross income, expenses, and taxable income for the business;
- determine (on a yearly or interim basis) the percentage of gross income attributed to expenses and taxable income; and
- determine a trend for the business based on the change in these percentages over time.
The lender may use Fannie Mae’s Comparative Income Analysis (Form 1088) or any other method of trend analysis that enables it to determine a business’s viability, as long as the method used fairly presents the viability of the business and results in a degree of accuracy and a conclusion that is comparable to that which would be reached by use of Form 1088.
A copy of the written analysis and conclusions must be retained in the individual mortgage file.
Use of Georgia Business Assets
When a Georgia mortgage applicant intends to use business assets as funds for the down payment, closing costs, and/or financial reserves, the lender must perform a business cash flow analysis to confirm that the withdrawal of funds for this transaction will not have a negative impact on the business. In order to assess the impact, the lender may require a level of documentation greater than what is required to evaluate the borrower’s business income (for example, several months of recent business asset statements in order to see cash flow needs and trends over time, or a current balance sheet). This may be due to the amount of time that has elapsed since the most recent tax return filing, or the lender’s need for information to perform its analysis. See B3-4.2-02, Depository Accounts, for additional information on business assets.
Income Verification for Georgia Self-Employed Co-Borrowers
When co-borrower income that is derived from self-employment is not being used for qualifying purposes, the lender is not required to document or evaluate the co-borrower’s self-employment income (or loss). Any business debt on which the borrower is personally obligated must be included in the total monthly obligations when calculating the debt-to-income ratio.
Verbal Verification of Georgia Employment
For requirements regarding verbal VOEs, see B3-3.1-07, Verbal Verification of Employment.
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