What are the requirements for self-employed individuals or LLC owners to get approved to buy a home? (60 second answer)

SELF EMPLOYED People - I love working with y'all !!!

I have helped several Small Business Owners purchase homes and investment property and I would love to guide you to your goals as well.

To buy a home, you will need the following:

1. Most recent 2 years of tax returns filed in which you reported self employed income.**
2. A simple version of a Profit and Loss statement for the current year***

Need some kind and experienced assistance? Then reach out to Jocylynn Coleman She can get your tax situation looking right - https://affluentconsulting.org/

**You don't have to file "business taxes." This is about your personal tax return and what income sources you applied to it. You can also have a mix of W2 and self employed income without issue.

*** I have a template for a Profit and Loss Statement that you can use to create one in less than an hour.

What happens if you don't have these 2 items?

If may or may not cost you a little more up front.

If you only have one year of tax returns that included some business income, you may still qualify for the 3% down payment options, but you will have fewer down payment assistance options to reduce it any further.

If you have never filed your business income on your tax return and have no other sources of income, there are other loan options that will not require these 2 things but the down payment is usually higher, such as 10 - 20%. So if you can swing that amount, there are options for you.

If you have filed W2 income but not your business income, then you can still use down payment grants to lower your costs but your shopping budget can ONLY be based on the income you reported.

What happens if you do have 2 years of tax returns?

But if you have the above info, you can qualify for most loan products and get the 3–5% down payment options.

If you have at least a 600 credit score, you also have access to some forms of down payment assistance to make the purchase even cheaper for you. If you have 640 or higher, in Louisiana, you will certainly have access to a down payment grant to lower your upfront costs.*

When can you buy a home?

Actually, you could start shopping now. You do not have to wait to file your taxes. Give me a call to review your current numbers and I will explain what your likely house shopping budget will be. I can also send you some examples houses that would fit your budget. - 504-535-4353

Call or Click the Link to schedule time to chat - https://calendly.com/jesbordelon

Are you ready for Tax Season 2025?

I highly recommend reaching out to Jocylynn Coleman She can take away the stress and worry of tax season.

Learn more about Jocylynn at the following link: https://affluentconsulting.org/

*The above information was accurate at the time of initial writing 12/29/2024. Please check-in for any updates on options.