Can I Buy A MN House If I Am Self-Employed?

Yes, with our help.

We know it can be difficult buying a house in Minnesota when you are self-employed or a 1099 worker. Stated income, or no doc loans, are a thing of the past in mortgage lending. Unfortunately, the bank statement program that replaced stated income loans is not much better. Whether mortgage lenders use bank statements or tax returns to verify income, they still fail to solve the most glaring issue for the self-employed: they only consider taxable income versus gross income.

This is the elephant in the room that the mortgage industry has either been unable or unwilling to solve.

After all, it seems backwards that the self-employed are penalized for maximizing their deductions when that is the entire point of running a business.

How To Get A Home Loan If You Are Self-Employed

We provide contract for deed financing, a desirable alternative for the self-employed. We are NOT a mortgage lender; therefore we do not have to follow the restrictive rules that keep so many self-employed buyers from achieving their dream of home ownership.

Unlike mortgage lenders who want exceptional credit scores for the self-employed, we perform no credit checks. Instead, we practice common sense in evaluating income. We are self-employed just like you and understand the ins and outs of expenses and deductions.

Our Down Payment Requirements Can Be Lower Than A Mortgage

Depending on where your preferred property is located, you may only need a down payment as low as 10%. If the property is in rural Minnesota, the down payment requirement will be 20%. Learn more about the locations we serve.

We Won’t Average Two Years Of Income

Many mortgage lenders want a minimum of two years of tax returns. Taking an average of the two years will almost always result in lowering the qualifying income, placing the self-employed behind the eight ball when it comes to getting approved for a mortgage. We focus on current and future income, taking a commonsense approach to small business and entrepreneurship.

Our Program Is NOT A Stated Income/No Doc Loan Program

As our clients discover we are extremely flexible versus mortgage lenders on how we qualify income for loan approval, but this is not a stated income loan program.

We need to be able to verify income, employment, and down payment for each of our borrowers. We can practice common sense for those who receive tips as part of the restaurant industry as an example, but in general we will only lend on what we can verify.

Can I Buy A MN Home Without Two Years Of Employment?

Yes, with our help.

Unlike mortgage lenders, we focus on current and future income rather than looking at an arbitrary number of your tax returns. We do prefer buyers to have 12 months of employment history, but we will still consider clients with less than that.

What If I Have Bad Credit?

No problem.

This is a no credit check loan program!

Also, for the self-employed who have gone through hardships such as: bankruptcy, foreclosure, or short sale, a mortgage lender will require a certain length of time to pass before being eligible for FHA or conventional financing. We do not have such requirements. We are willing to work with buyers on the first day any of the above issues are resolved, as well as self-employed people with bad or no credit.

Self-Employed Home Loan Requirements And Qualifications

The following are our requirements and qualifications for the self-employed to obtain contract for deed loan approval:

• A minimum of one year of recent tax returns (two years is ideal): if these have not been filed, we can verify income through bank statements.
• Verified down payment funds: Checking account, savings accounts, seller NET sheets from the sale of home, and gifts from friends or relatives are all common sources of down payment funds.
• Current year-to-date profit and loss (PL) statement or 1099: If you have never done this, we can help. Those who receive 1099 from their employer can ask for a current statement.
• Copy of photo identification such as a driver’s license or passport.

Buying A House When You’re Self-Employed Starts With CBlock Investments

It is possible for the self-employed to get a home loan in Minnesota and achieve homeownership! It just takes a bit of creativity. That’s where we come in. Our mission is to create win-win situations with our clients to provide homeownership opportunities when a bank mortgage is not available. Call 651-307-7663 or fill out our contact form to get started.