If you own a business and are trying to get a new Irvine mortgage refinance or even a Mission Viejo mortgage refinance, you may find it harder than you thought. Self Employed mortgage approval has many challenges and only an experienced mortgage professional can help you. Do you have a corporation or other corporate entity like a LLC that files corporate tax returns.
Let’s look at a typical self-employed mortgage application. Say the Borrower owns a warehouse and he has a LLC corporation. The 2 year average NET bottom line income that you paid taxes on is the Income used. The only other thing might be if in your claimed expenses you also paid yourself either W2 income or 1099 income.
The first thing the self-employed borrower will say is that he pays all his bills and expenses them thru the LLC. Because your profit is reduced, getting a mortgage Irvine can be tough to get.You can get credit to your self-employed income but you will need actual 12 months of cancelled checks to prove each item you are excluding. So if you have say an auto payment paid by the LLC, you can increase your income by excluding the payments paid by the corporation.
If you own equipment and other items you depreciate, you can add the depreciation back to the net income. You can also get a credit for Self-Employed Home Office you claimed as well as mileage. But if you have any non-reimbursed expenses you claim you will have to subtract that from the net income of the LLC.
You should be concerned about refinance rates Irvine but don’t loose focus of some of the other elements. Your also going to be paying fees for the new loan. Use a mortgage payment calculator Irvine to see what each rate does to reduce the payment.
Owning a business is a great life but usually it entails the owner working long hours and having plenty of headaches. The refinance mortgage Irvine will be one more to add to the list. It won’t be easy but usually worth the effort.
We have years of experience working with simple self-employed situations and also very complex, large corporations. We also offer a Stated Income Irvine mortgage refinance. This one requires good credit, assets but NO Tax Returns California home loans.