Buying a house and turning it into a home, is every renter’s dream. However, you should know that purchasing a house can be a long-term financial investment. For some, it might be a walk in the park, and for others, it might be a Herculean task. The latter might be true for self-employed buyers. Conventional lenders like banks, credit unions, and mortgage providers tend to ask for supporting documents such as W-2s, pay stubs, and regular proof of income. All of these documents might be hard to produce for self-employed individuals due to their unique income stream. But it’s no cause for alarm as you might be eligible for no tax return mortgage loans. By applying for these mortgage options that cater to your needs, you can achieve your dream of homeownership.
Let’s take a closer look at how you can use your credit score, bank statements, debt and repayment management to secure better terms and conditions on your loan option.
3 Factors to Consider When You Apply for No Tax Return Mortgage Loans:
When it comes to securing no tax return mortgage loans that suit your preference, you don’t have to worry about your tax returns. Unlike traditional 9 to 5 employees, you do not have the typical documents that come with the job. Therefore, applying for no tax return mortgage loans is a good option for you. Keep in mind that no tax return mortgage loans might typically offer higher interest rates and require larger down payments.
1. Make Use of Your Bank Statements:
As a self-employed buyer, you might face rejection from different lenders due to your unique employment. But that shouldn’t stop you from purchasing the house of your dreams! You can use your bank statements to secure the best terms and conditions when it comes to applying for no tax return mortgage loans. Over the last couple of decades, A vast number of first-time home buyers have secured a mortgage by using their bank statements as supporting documents. Whether you own a business or work as a freelancer, lenders are now willing to accept your bank statements as placement for traditional income documents. You might need to present your own personal bank statements as well as your business account. The bank statements could be from the past 2 years.
2. Secure No Tax Return Mortgage Loans with Your Credit Score:
When it comes to purchasing a house, your credit report, credit score and credit score play a major role in securing better terms and conditions for no tax return mortgage loans. This is because many lenders use credit score as a set metric to judge your credibility. Therefore, a healthy credit score is crucial when it comes to buying your first home. Most lenders are more than willing to approve your mortgage application when your credit score is more than 700. But don’t be disheartened if your credit score is not-so-good, as you can still apply for no tax return mortgage loans. You can achieve this by leveraging your low Debt-to-income (DTI) ratio and a large enough down payment.
- 580 FICO score for Federal Housing Administration (FHA) Loan.
- 620 FICO score for Conventional Loans such as Fixed Rate Loads and Adjustable-Rate Loans.
- 660 Credit score for Jumbo Loans
Haste is waste. Therefore, before you decide to apply for no tax return mortgage loans with a bad credit score, you should wait for a couple of months. During this time, you can improve your credit score by repaying standing debts and payments. You can also reach out to a reliable mortgage lender, such as Dream Home Mortgage, to devise a financial plan.
3. Take Advantage of Your Unique Source of Income:
A recent survey has shown that around 16.2 million Americans are self-employed across various fields. This number is on the rise. It has also been seen that in 2023, around 64 million Americans have also done freelance work. Both of these are possible indicators that Americans are now more open to the idea of self-employment. As it can lead to better time management, more earning potential and flexibility. Self-employment allows you to be your own boss, allowing you to schedule your own work and hours. Therefore, you have ample time to work on different earning streams, which can be advantageous for securing no tax return mortgage loans. You can use:
- Income from rentals you own
- Investment dividends
- Freelancing gigs
- Social security benefits
- Child support or alimony
Are You looking For More Information on No Tax Return Mortgage Loans?
As more and more Americans are opting to choose self-employment as their primary method for earning income, lenders are willing to cater to their needs. Therefore, you no longer need to compromise on your end by changing your profession. With the help of no tax return mortgage loans, home ownership is within your grasp. If you are looking for more information regarding these mortgage options, you can reach out to Dream Home Mortgage. To gain a basic understanding of the mortgage application, you can book a free 30-minute consultation with Mr. Hussein Panjwani, CEO of Dream Home Mortgage and a leading real estate expert. So, what are you waiting for? It is high time that you overcame these hurdles and become a home owner.