Navigating Mortgage Requirements for Self-Employed Borrowers in Georgia

If you’re a self-employed individual in Georgia looking to secure a mortgage, it’s essential to stay updated on the latest requirements and guidelines. At GeorgiaMortgage.com, we understand that the mortgage process can be complex, especially for self-employed borrowers. That’s why we’re here to help you navigate these waters with ease.

Updated Announcement: One-Year Income for Self-Employed Borrowers

A recent update has been made regarding the use of one-year income for self-employed borrowers. To qualify, each business entity must have been in existence for a minimum of five years. This means that if you have multiple business sources, the length of time each business has been operational will determine the documentation required. Specifically, you may need to provide two years of business returns for one business and only one year for another, depending on their respective ages.

Waiving the Two-Year Business Tax Returns Requirement

The existing requirement to waive two years of business tax returns can be a significant advantage for self-employed borrowers. However, to qualify for this waiver, all of the following conditions must be met.

1. Personal Funds for Down Payment, Closing Costs, and Reserves: The entire down payment, closing costs, and reserves must come from your personal funds. This ensures that you have a vested interest in the property and are financially stable.

2. Business Longevity: Each business must have been open for at least five years. This demonstrates the stability and sustainability of your income sources.

3. Income Growth: The most recent two years must show an increase in income. This indicates that your businesses are not only stable but also growing, which is a positive sign for lenders.

Why These Requirements Matter

These requirements are in place to ensure that self-employed borrowers in Georgia are financially stable and capable of managing their mortgage payments. Lenders need to see a consistent and reliable income stream, especially when dealing with self-employed individuals who may have more variable income compared to traditional employees.

How GeorgiaMortgage.com Can Help

Securing a mortgage as a self-employed borrower in Georgia may come with its unique set of challenges, but with the right guidance and understanding of the requirements, it is entirely achievable. Stay informed, be prepared with the necessary documentation, and let us assist you in making your homeownership dreams a reality.