I Just Started A Business – Can I Qualify Mortgage ?

I Just Started A Business – Can I Qualify Mortgage ?

If you just started a business or you’re thinking about starting a business, you might be asking yourself the question, can I qualify for a mortgage since I just started my business?

And the short answer is no. Most lenders, they want a two year history of the business being open and operational before you can qualify for a mortgage.

Now, there are exceptions. There’s ways to qualify if your business has been open only one year, but less than two years. And then there’s even more exotic loan programs where you can qualify sooner, but you’re going to pay a higher interest rate for those types of products. The short answer is, your business needs to be open for two years before you can qualify for a mortgage.

The other thing that lenders are going to be looking at is cash flow.

They’re going to look at if your business is making money basically. And what they’re going to do is they’re going to look at your tax returns to see what your bottom line income is. If you’re writing off most or all of your income through your business expenses, you still may not be able to qualify for a mortgage, even if your business has been open for two years. Depending on your situation, you may or may not even qualify after two years. It just depends on how you’re filing your tax returns. If you’re self-employed or contemplating starting a business, and you want to buy a house or refinance, it’s very important to have an experienced mortgage lender review your situation so you can see what your options are and see what your timelines are.

That’s where I come in. If you have any questions regarding qualifying for a mortgage, if your self-employed, soon to be self-employed, or even if you’re not self-employed and watching this video, I’d be happy to review your documentation, your situation, and give you some honest answers as to what to expect.

Once again, my name is RJ Baxter of Fairway Independent Mortgage. Have a great rest of your day. And I appreciate you guys watching. 303-670-0137 or baxterteam@fairwaymc.com.