Can I get a mortgage if I am self-employed?

Yes! You can get a mortgage if you are self-employed in California. The main thing that you need to provide when applying for a mortgage is proof of income. However, due to the nature of self-employment, the way that income is calculated can be different. In order to prove your income, you will usually need to provide tax returns from the past two years, as well as profit and loss statements. This information is also needed to calculate your debt-to-income ratio (DTI), which lenders use to decide whether or not to approve your loan. Your DTI should be below a certain threshold in order to qualify for a mortgage in California. In addition to your income, lenders may also look at other factors such as your credit score, liquidity, other assets, and past payment history. It’s important to make sure that you have all the necessary documentation ready before you apply for a mortgage. Self-employed individuals should also be aware that they may be subject to different interest rates than those who are employed. This is because the risk is perceived to be higher for those who are self-employed. However, with good management and documentation, you can still get a mortgage even if you are self-employed.

Related FAQs

What are the fees associated with a mortgage?
What is a first mortgage?
What is an "assumption" mortgage?
What is the difference between a primary and secondary mortgage?
What is a bridge loan?
Can I get a mortgage if I am retired?
How is my mortgage rate determined?
How does a lender decide whether to approve my mortgage application?
What is interest rate?
How does a mortgage broker differ from a lender?

Can I get a mortgage if I am self-employed?

Related FAQs

Related Blog Posts