Home Loans And Starting A New Business

Added June 3, 2004 by Ilyce R. Glink

Print Articles

Summary: It can be difficult to get a home loan if you are self-employed or starting a new business. Lenders want to see that you've been self-employed for at least two years. If you are self-employed, you'll need tax returns to back up the income that you're claiming.

Q: I'm a stay-at-home-mom and I'm interested in starting my own home daycare business.

Would someone in my situation qualify for a home loan, or do I have to have a sufficient amount of work experience in that job field to get a home loan?

My credit is good (I have no loans or bankruptcies) and my husband is just beginning to build his credit (less than a year ago).

A: Lenders want to see you self-employed for at least two years, with tax returns to back up the income that you are claiming.

Remember, there are opposite forces at work here -- when you have your own business, you may want to boost your expenses as high as possible, so you pay as little in taxes as possible. But to qualify for a home loan, you'll want to show as much income as possible.

See more articles on this topic by clicking on the "RELATED ARTICLES" above and to the right.

We have over 5000 articles on Real Estate Advice, Personal Finance Advice and Consumer Advice on our site. We encourage you to look at these articles. As always, if you have a comment on our articles, don't forget to post your comment below. We thank you for coming to ThinkGlink.com.

© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating ThinkGlink.com please contact us.

Previous article Next article