Home Loans for Individuals Working from Home

It’s not always easy being self-employed. In many cases you must work harder than employees do to make sure everything is running smoothly with your business, and you are probably working more hours as well. It can be difficult for individuals who work from home to find a mortgage company that will offer them the best loan options for their situation. There are lenders out there that specifically issue loans to self employed.

Why work from home, and how does it affect your loan eligibility?

The first thing you’re going to want to consider when looking for a home loan is your eligibility. If you work from home, certain requirements apply. For example, most lenders will require you have been in business at least two years before they allow an individual who works from their residence as the principal place of business. Essentially, you will need to prove you are established in your industry and have the means to continue providing for yourself.

The benefits of a home loan for individuals who work from home

The best mortgage lenders for individuals who work from home offer loan programs that cater to the self-employed. Some of these benefits include:

·          Lower interest rates than conventional mortgages due to risk assessment and payment reliability

·          Eligibility without two years in business with documented income history, since you are using your home as the principal place of business

·          An easier approval process, since you will be able to provide more documentation regarding your income and ability to repay the loan amount requested.

How to apply for a home loan if you are an individual who works from their residence

The first step towards getting a loan for your home is to do some research. Get online and begin looking at different lenders that offer programs specifically designed for those who work from their own homes.

Next, you will want to visit each of these lenders’ websites and determine what they require in terms of documentation to get the ball rolling on approval. Some lenders may require nothing more than what you have in your online tax records, while others will need to see a full three years of income history and statements before they can consider issuing an approval.

Finally, start applying for the loans that fit best with your financial situation. It is important to remember that each lender has its own set of requirements, so make sure you are applying to several different companies instead of just one. You will also want to check the interest rates offered by each lender before deciding which is best for your unique situation.

What does the average interest rate on a mortgage look like?

The average interest rate on a mortgage is around four percent. This percentage will vary depending upon the type of loan you are trying to get, however. For example, if you are purchasing your home with little money down and have a poor credit history, then there’s a good chance that the interest rates for your particular situation could be much higher than four percent.

If you are self-employed and considering purchasing a home, it’s important to take the time to research what kind of interest rates you can expect from different lenders. The only way you’ll know for sure is by getting online and doing some comparison shopping before applying for any loans. You may be surprised at how much more affordable mortgages can be for those who work from their own homes.

If you’re a work-from-home individual, getting your own home can be difficult to do. But with the right plan and support from an experienced loan officer, it is possible. Work closely with our specialists to take advantage of every opportunity to achieve home ownership while living at home full time.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.