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Here are some answers to common questions freelancersmight have about getting a mortgage.
What Challenges Do Freelancers Face When Applying for a Mortgage?
Then, they must prove that their income is likely to continue consistently.
Letson explained that demonstrating consistency can be the biggest challenge.
The ability to repay comes into play when you have inconsistent income.
How Long Do I Need To Be Freelancing To Be Approved for a Mortgage?
Jennifer Beeston, who Scotsman Guide ranked as the 2024 No.
1 VA loan officer, explained that in most cases, a freelancer will need a two-year income history.
In a perfect world, you have two years of filed tax returns, she said.
While two years of self-employment income is the general rule, Letson explained that there are exceptions.
Though these programs offer more flexibility, income stability is still a main component of the qualification process.
Do I Need To Make More as a Freelancer To Qualify for a Mortgage?
Do I Have a Better Chance of Being Approved If I Already Own a Home?
Making on-time and consistent payments demonstrates your ability to repay your mortgage on a freelance income.
The established credit history helps, but it doesnt eliminate documentation requirements, Letson explained.
What Else Can I Do To Maximize My Chances of Being Approved?
Beeston encourages all of her clients to file their tax returns honestly and ethically.
If you have a real expense, show it, she said.
Dont ask a lender how much you have to show on your taxes.
Instead, you should be telling a lender how much you make.
Lenders are not accountants, she explained.
As a self-employed borrower, there are extra hoops, Beeston said.
Youll need to be able to show your ability to repay your mortgage.
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