Securing an Arizona mortgage when you’re self employed can be a frustrating challenge. There was a time when you could use your bank transactions as evidence of your income, but that’s no longer the case. Today, you need to show not only two years’ worth of income on your tax returns, but you also likely have to put down 20% or more and have up to six months’ worth of savings that can cover not only your mortgage payments, but also all of your other bills as well.

Adding to the Trouble of Getting Home Loans in Arizona for Self Employed Entrepreneurs

It doesn’t matter whether you live in Arizona or any other state in the country: self employed individuals have, for the most part, seen their incomes drop during the recession. Even though there are signs that we are recovering from this last recession, since self employed individuals are required to show the last two years of their income, it means that you are going to find that much of that has diminished from where it was just a few years previously.

Positive Signs Ahead

Not all is dark and dreary with regard to acquiring an Arizona mortgage if you are self employed. ‘Stated income loans,’ as they are more commonly referred to as, are making a comeback according to investors and may be in the market within the next year. The downside is that self-employed borrowers must be able to show solid income for the past two years, have a credit score of at least 720 (on average) and that aforementioned 30 percent down payment.

Does this mean that if you’re self employed and your income during the past few years has been on the downswing that you can forget about taking advantage of the great home prices in Arizona? Does it mean that you should forget about applying for home loans in Arizona? Absolutely not. It merely means that you are going to have to be more selective in the home loan that you apply for and find a Arizona Mortgage broker who understands the process impeccably.

One of the greatest feelings in the world is being able to wake up in the morning and know that you are going to work for the best person you know: you. No boss to answer to, no punching a clock. While that is a great feeling, when it comes to securing an Arizona mortgage, it also means that you have to live up to a different set of expectations that other people. Contact a professional mortgage broker to help guide you through the process.

If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to team@azmortgagebrothers.com or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

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Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.

Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.

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