Buying A Home While Self Employed in NC

Are you a professional fisherman – or are you just “fishin'” for sales?  Either way, if you are self-employed and you want a new home in North Carolina there’s some important steps you need to take!  North Carolina has been the LEADER in creating Preditory Lending laws that help insure “unsavory” lending practices do not continue to add to the “credit crunching” mortgage meltdown.  Unfortunately, that has a direct affect on the “ease” for a self employed borrower who needs a loan. Is it IMPOSSIBLE??  NO!

• Get your credit checked.  As an owner of a business, you already know how important it is to maintain a GREAT (not good) credit score.  If you are interested in owning new (or more) real estate talk to your lender.  If you have a 660 credit score – there might be a way for us to help you pay down the RIGHT credit cards, or add the right kind of credit, to maximize your good score into a GREAT score.  This process could take 60 days – so talk to your lender EARLY in the process.
• Save up!  If you write off most of your income (like your accountant wants you to) then you might need a “stated income” loan (also referred to as a SIVA or SISA).  You might need this kind of loan – not because you need a “liar” or “cheater” loan – but because you’re a smart business person who is taking every advantage Uncle Sam gives you to reduce the taxes you pay.  Stated loans require AT LEAST 25% down and GREAT credit scores.

Now is a GREAT time to purchase Real Estate – but if you are Self-Employed, don’t be caught by surprise if you have to meet extra guidelines in North Carolina!!!

If you are considering purchasing a home in Cary, or buying a house in Raleigh, please call Steve and Eleanor Thorne