Self-employed mortgage applicants must prove stability of employment and income, traditionally going back at least two years. This regulation is a bit tougher than it is for regular salaried employees.
Traditionally, mortgage lenders have required two years federal income tax returns in securing a mortgage for purchasing or refinancing real estate.
Fortunately, there is a way to use just one year of tax returns to qualify for a mortgage.
This can help newer business owners, as well as those who experienced a down year in the past.
Introducing Two-X Flex 1-Year
Finance of America Mortgage has a new, proprietary product that drastically reduces the amount of documents and simplifies qualification.
Two-X Flex 1-year requires only one year of income documentation and offers borrowers more flexibility in qualifying for a mortgage.
- 1-year of income documentation used for qualifying
- Wage earner and self-employed borrowers
- Up to 90% loan-to-value with no mortgage insurance
- As low as 640 minimum FICO
- $100,000 minimum loan amount
- Up to $3,000,000 maximum loan amount
- 30 year fixed
- 5/1, 7/1 and 10/1 ARM –fully amortizing and interest only
- Primary Residence, Second Homes, Investment Properties
- Up to 50% debt-to-income ratio
- 1-2 units, PUD and warrantable condos
In order to utilize this one-year requirement, it’s important to understand that your tax return must reflect a full year of self-employment income.
For example, if you became self-employed in April 2017, that year’s tax returns are not going to reflect a full year. If you started your business in November 2016, then your 2018 tax returns will demonstrate a full year of experience running your business.
Give me a call to find out more – as there are multiple alternatives that we can examine!