I am self-employed; how to apply for home construction financing?
Answer:Self-employed people have access to home construction financing through Low and No Doc loans. Many people have difficulties verifying their business cash flow and are often going to do better with stated income or NINA loans. Do not overstate, however, your income, as the lender will check your assets to see if they correspond to the stated amount, unless, of course, you are doing a NINA loan which may be the most expensive type of home construction loan.
Also, if you are self-employed but do not have a two-year track of working for yourself, you will not be able to get home construction financing with a stated income loan. No Income No Asset No Job will be the right loan for you, or perhaps you could find someone to co-sign with you. The unpleasant thing is that person cosigning with you must stay on the premises. If they are not your spouse or partner, you are not going to be allowed to co-sign with them.
Our advice: Be sure to ask your lender about FHA loans. FHA loans have very competitive interest rates because the loans are insured by the US Federal Government. Even if you have had serious credit problems, such as bankruptcy, it is easier to qualify for an FHA loan than a conventional loan. Also, taking an FIXED rate loan while the interest rates are still low is a smart idea. Check your eligibility here:
| Not at all | Definitely |
Mortgage QnA is not a common forum. We have special rules:
- Post no questions here. To ask a question, click the Ask a Question link
- We will not publish answers that include any form of advertising
- Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
Common misspellings: mortage and morgage