Self-Employed Home Buyers: Qualify for a Home Without Needing Tax Returns.

Introduction:
Self-employed (SE) home buyers often face qualifying issues, particularly if they lack two years of self-employment history. Many times, their tax returns do not show enough income to qualify for standard loan programs, such as Conventional, FHA, VA, and USDA/Rural Housing loans.

New Loan Programs:
Fortunately, there is good news for some SE buyers. New loan programs are now available that allow lenders, like FAIRWAY, to qualify buyers to purchase their primary residence, using their 1099s instead of their tax returns. These are known as non-conforming loans and have been available for a while.

Down Payment Requirements: 
SE home buyers will need to put down a minimum of 10% of the home's sale price, depending on the home usage and credit scores. This is a crucial detail to keep in mind.  More information below.

Employment History:
Typically, SE home buyers need to have been in business for at least two full years to qualify for most standard programs. However, this new program offers some flexibility. Only one year of 1099s is required if the buyer can document that their prior job was W2 and in the same line of work. This two-year history requirement often keeps many SE buyers out of the marketplace.

Investment Properties:
This program can also be used to purchase rental properties or 1-4 unit investment properties. When using the 1099 Home Loan Program, the down payment and interest rate will be based on the intended use of the home (Primary Residence or Investment Property) and the buyer's credit scores.

Conclusion:
For self-employed home buyers, these new loan programs offer a viable alternative to traditional lending requirements. By using 1099s instead of tax returns, more SE buyers can achieve their dream of homeownership.

"Learn how self-employed home buyers in PA can qualify for home loans using their 1099s instead of tax returns. Discover the benefits of non-conforming loans and how FAIRWAY can help you secure your dream home."

For more information on this program, or any of our other loan programs, call our office at 717-431-9299 and ask for one of our experienced and courteous Loan Officers or email at kenp@fairwaymc.com