Question by coleykim69: What are the chances of getting approved for mortgage refinancing if self employed?
My fiance and I are trying to get a small loan ($ 35,000) to purchase another home as an investment property but we are self employed. We have only been running our business for about 8 months but have all profit from sales recorded and so on. We had a full time job at an employer prior to that for the last 10 years + of our lives. We have a good chunk of money put away in our savings. Our checking account is always on the positive side. We have not been late on any payments in the last 10 years. Paid off our vehicle…etc. etc… Does anyone have knowledge about this? Just wondering if we have any chance to get this loan? We have heard its slim to none. Can’t talk to a banker until Monday and we are just curious. Thanks
Best answer:
Answer by STEVEN F
Being self employed is NOT a problem if you can provide tax returns showing sufficient income. However, you will need to have at least 2 YEARS of self employment income.
Applying for a mortgage UNDER $ 50,000 is a problem. Such loans are simply not worth the effort to the bank.
Applying for a mortgage for INVESTMENT property is an other issue. You are more likely to walk away from an investment property than your primary residence.
You were told correctly that this loan is HIGHLY unlikely. Unless you can pay CASH, you are not in a position to buy investment property.
Know better? Leave your own answer in the comments!