Question:

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.

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