Self Employed? It Now Might Be Easier to Get a Mortgage
On February 2, 2022, Fannie Mae and Freddie Mac changed some of their requirements for obtaining mortgages.
Back in 2020, those who were applying for mortgages as self-employed were required to show a year-to-date profit and loss statement as well as two or three months of bank statements. The reasoning behind this was to make sure that businesses were not dying because of COVID, placing the lenders in a bad situation when lending to those who potentially were going out of business.
Unfortunately, many self-employed business owners were denied loans during that time because of the rule, and many of them missed out on the incredibly low interest rates because businesses looked bad on paper for the first part of 2021.
However, in February of 2022, Fannie Mae and Freddie Mac pulled back the requirement, and those who are self-employed no longer need to provide that year-to-date profit and loss statement. Obviously, there are still much information you have to provide, and your business should be sustainable before you get a loan, but it should be a little easier now.
If you’ve been denied in the past, you might want to look into the new requirements with a trusted mortgage broker and see if you can qualify for a mortgage now. The rates are still low, so don’t delay.