Newark Consumer Law Firm
Worried man

Will I Qualify for a Modification if I Am Self-Employed?

Lenders Can’t Understand The Finances Of The Self-Employed

I suppose they just don’t want to. Maybe they fear they cannot verify the financial information submitted by a self-employed person. Whatever the reason, this has been a very difficult issue for quite a number of years, and given that a large number of people in the United States are self-employed, this issue affects many people.

What, Then, Can A Self-Employed Person Do To Qualify For A Modification?

Start with audited financial statements by a certified accountant. This will go a long way in convincing your lender that your numbers are real.

It would also be helpful if you have been in business for a number of years. Many businesses fail in less than five years. If you have been in business for more than five years, you have proven that you have a reliable income.

Another approach may be to pay yourself a regular paycheck each month just like regular employees do who are not self-employed. This can be helpful to a lender when underwriting your loan modification.

Understand how the mortgage lender thinks and prepare and submit your information in a form that the underwriter expects and can understand.

To find out if you qualify for a loan modification, read our post: Do I Qualify For A Home Loan Modification?

It will be an uphill fight but if you start with the ideas above, you may have a chance.

Good luck!