Chances are unless you have been living on the deserted island, you almost certainly understand that on account of the financial meltdown mortgage lending has changed permanently. And unfortunately for the majority of home buyers, the change is just not good. And while some changes to mortgage programs were required, as usual government and big business went to the opposite extreme.
This overreaction has to all intents and purposes eliminated many self-employed house buyers from the housing market. Many self-employed homeowners fall into a "Catch 22" scenario. Will they go ahead and take most aggressive tactic for their Federal and State taxes or would they take a much more cautious method of taxes in an attempt to show ample income to be entitled to a home financing loan on a home they need to purchase? It's really a difficult call. Being self-employed myself, I am aware their plight.
Inside 'wild wild west' days of mortgage loans and property, a self-employed buyer could simply do a stated or no doc mortgage to have a mortgage to get your house. They could even get no doc jumbo loans. Mortgage lenders were doing 'one ups' on each other to find out just how low they are able to go. This was particularly true for the now extinct sub-prime mortgages.
It reached a stage ahead of is know for cards came down that banks were lowering their standards just about every day to capture business. Those days are virtually gone with the exception of some private mortgage programs and seller financing. This type of person basically the new sub-prime lenders. Millions of distressed home sellers are relying on owner financing only to do away with their home or even in the case of businesses, their real estate.
Self-employed homeowners will either opt for an individual mortgage loan coming from a private lender or owner financing (obviously also private lending but unique) or have to accept less property. It's actually a shame because lots of self-employed home buyers have excellent credit but they are just a little short on taxable income so that you can pay the property they desire. However, there's some good news. Well it is certainly bad and good news. The good news is there are tons of foreclosed virginia homes at 'fire sale' prices. The bad news is decent people lost their homes for the crooks to be obtainable at this kind of low cost. It is the new law of the housing market. Hopefully most house buyers and home sellers have learned the valuable lesson that their home mustn't be treated like a financial asset. It needs to be treated as his or her sanctuary.
