HomeLander Mortgage

Tag: self employed mortgage

  • The Mortgage Lender that Austin Trusts

    The Mortgage Lender that Austin Trusts

    With multiple home loan programs, competitive rates, and a reputation for outstanding communication throughout the process, we are the mortgage lender Austin homebuyers can count on. HomeLander Mortgage is based just outside of Austin, TX in the beautiful Lakeway area.  Providing home loans across the state and to all counties including Williamson, Travis, Bastrop, Hays, Caldwell, Comal, Guadalupe, and Bexar.  Keep Austin Weird – that is the motto!  Land a loan, land a HOME – that’s our motto!

    Whether you are looking to purchase an existing home, refinance your current mortgage, build a new house from the ground up, or renovate your home, we’ve got you covered!  We will go over your individual needs and situation to determine the right fit for you.  We have the following mortgage programs available:

    Conventional mortgages – Conforming loan programs that are not insured by the government.  Offers more flexibility in terms of property type and characteristics, but loan qualification criteria may be more stringent.  Maximum loan is limited to the current conforming county loan limit for your county.  A 3% minimum downpayment is required and mortgage insurance is needed if having less than 20% equity at closing.  Many people will re-appraise the loan after renovations or payments increase equity, and this can cancel the need for mortgage insurance.

    FHA home loans – Government-insured loan program designed to help homebuyers get into a home with a lower down payment requirement and less stringent credit criteria than conventional loan programs.  Take advantage of down payments as low as 3.5% and flexible credit score requirements.  FHA construction loans and FHA renovation loans are available.

    VA home loans – Government-insured loan program available to veterans, active duty service members, or surviving spouses receiving VA compensation with no down payment or mortgage insurance requirement.  Save money by not having to pay for costly mortgage insurance. Looking to build a new home?  New construction is allowed. Looking to renovate your home, you are in luck!

    USDA home loans – Government-insured loan program designed to assist people in designated rural areas that is available with $0 down.  Income restrictions may apply and mortgage insurance is required.  USDA construction loans and USDA renovation loans are available to those within the designated USDA-eligible areas.

    Construction loans – Conventional construction Loans, FHA construction Loans, VA construction Loans, USDA construction Loans – We’ve got it all! ~ Ask us how you can wrap the entire process into a One Time Close loan and not have to make payments during construction.

    Jumbo loans – Loans exceeding the current conforming loan limits are considered jumbo loans with additional loan qualification criteria such as a 700 minimum credit score and 10% minimum down payment requirements.

    Renovation home loans – Our renovation loan products are perfect for fixer-uppers or older homes that need updating as well as those seeking solar panels and new roofing!  Want to add on a room?  You can do that too!  We have multiple loan options that will suit your needs – Conventional renovation loans, FHA renovation loans, VA renovation loans, and USDA renovation loans.

    Refinancing home loans – When you need to refinance your existing mortgage, we’ve got you covered!  Whether you are looking to lower the rate, change the loan type or term, or utilize the equity in your home for some cash back at closing, HomeLander Mortgage can do it all.  We offer Conventional, FHA, VA, FHA, and USDA refi’s, TX 50(a)(6) Cash Out, Fannie Mae HomeStyle®, Freddie Mac’s CHOICERenovation®, VA Renovation Refinance, FHA 203(k), VA Streamline (IRRL), and FHA Streamline (minimal documentation required).

  • Self Employed? No Worries – We Have Mortgage Options For You

    Self Employed? No Worries – We Have Mortgage Options For You

    The sheer number of self-employed workers is rising steeply. Even before the pandemic, 34% of the workforce was part of the so-called “gig economy” and 67% of employees were considering leaving their full-time job to freelance.

    The reality is that mortgage lenders evaluate self-employed candidates the same way that they do everyone else – including W-2 employees – in terms of acceptable credit score, an ideal debt-to-income ratio, and stability of income. In the case of self-employed borrowers, asset and income account statements can be used to verify worth.

    Self–employed borrowers are able to apply for all the same “traditional” loans. The main difference between self-employed and a W-2 mortgage process is the documentation lenders will require to support the application. At the end of the day, it’s the stability and viability of a person’s income and business (since this revenue can fluctuate) that lenders consider. Proving valid cash flow as a business owner, contractor, freelancer, or gig worker just requires a bit more paperwork.

    Most mortgage lenders will require at least two years of steady self–employment income before a borrower can qualify for a mortgage loan. There are some exceptions to the two–year rule.

    Someone can qualify with just one year of self–employment if they can show a two–year history in the same line of work. 

    Self–employment income that is eligible for mortgage financing include: Business owners, Freelancers, those who do contract work or seasonal work and those who have side work or “gigs.”

    Asset-Based Mortgage

    One mortgage product that is available to the self-employed is the Asset-Based Mortgage or ‘asset-depletion loan’. Borrowers are qualified based on up to 100% of their liquid assets divided by the term of the loan. 

    Another advantage is that no tax returns are required. Self-employed workers tend to use a great number of business expenses to “write off” and reduce taxable income on tax returns. 

    A bank statement loan lets borrowers qualify based on total funds coming into their accounts rather than tax returns.  Additionally, with asset loans, Debt to Income (DTI) Ratio is not calculated. 

    With this type of lending, self-employed borrowers will be borrowing against their assets. The loan amount granted is based on a percentage of the assets’ value. Borrowers can use 70% of what is in their retirement and investment accounts and 100% of their liquid assets.

    While asset-based loans typically have higher interest rates, self-employed and small to mid-sized businesses that are growing rapidly can benefit from these types of home loans as it  doesn’t touch any working capital.

    Liquid assets that serve as collateral are checking and savings accounts, certificates of deposit (CDs), money market accounts, mutual funds, stocks, and bonds. 

    Traditional Mortgage Options

    While an Asset-Based Mortgage is one option, most self–employed borrowers have no issues qualifying for a traditional mortgage that offers lower interest rates. In these cases, self–employed borrowers have to provide proof of the following:

    • Two years of personal tax returns and/or business tax returns
    • DTI below 50%
    • 620 minimum credit score
    • 3% minimum down payment
    • Year–to–date profit and loss statement (P&L)
    • Loan amount within conforming loan limits
    • With good credit and the ability to make moderate down payment of 10–20%, conventional mortgages are usually the better option. 

    There are also FHA, VA and USDA loan options available for the self-employed that offer lower down payment options. 

    Since every lender has their own qualifications on how to approve self-employed mortgage borrowers, it can be tricky to find the right fit. Rules vary based on lender and type of loan. 

    HomeLander Mortgage will be there every step of the way. Schedule a call to begin the process at www.homelandermortgage.com