As an entrepreneur, when you wanted to buy a home, did you have problems getting a mortgage with decent terms?
Posted by admin on Oct 4, 2008 in Small Business |
zfin06 asked:
Banks are famously wary of lending to small-business owners. So how did you manage to get a mortgage with reasonable terms? Or did many banks refuse you?
Balloon Gizmos - Real Estate Ballons - Auto Balloons
Banks are famously wary of lending to small-business owners. So how did you manage to get a mortgage with reasonable terms? Or did many banks refuse you?
Balloon Gizmos - Real Estate Ballons - Auto Balloons
no the trick is to owner occupy for a few months than leave…the original mortgage date is the only time you have to be an occupant.
I cannot get a mortgage on my own due to my being a sole proprieter…so my parents cosigned.
1. You have to be in business for at least 3 years but preferably more than 5.
2. Make sure you have your tax papers in order.
3. Make sure you have multiple bank accounts, biz and personal
4. Make sure your credit cards are not maxed out but have available credit.
5. Be prepared to show invoices or cash register receipts to the mortgage company for last year, sometime last 2 years.
As long as your credit history is excellent, you should have no problem getting a decent mortgage with reasonable terms.
Even an 80-20 mortgage with zero down is easy if you talk to a lender and tell them you want to do a ’stated income’ loan.
You will pay a marginal difference in interest rate - perhaps 1/4 percent - but you will also be able to refinance in several months or a year at a better rate because you will have a payment history on the loan.
Don’t let being an entrepeneur discourage you. Use the same determination you apply to your business to talk to various lenders until you find one cabable and willing to deal with a stated income loan.
Getting some one to co-sign your mortgage helps a lot.