The Key Things For self-Employed Home Buyers in Las Vegas

Dated: December 15 2021

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About a third of America’s workforce is self-employed, and that’s projected to grow in the next few years. Self-employment gives people flexibility in their lives and finances, and that’s a good thing. However, when it comes to applying for a mortgage, there are a few more steps for self-employed people to take.

Here are the key things for self-employed home buyers.

Income Verification

Lenders need to verify the income borrowers put on their applications. Employed people submit W-2 forms from their employers. Self-employed workers don’t receive W-2s. They may receive 1099 forms from some people they worked for, but these are not necessarily mandatory in every case. So, the only complete income verification self-employed workers can supply is their federal tax returns. Lenders typically require two years of those returns. If you have been self-employed for fewer than two years, or do not have returns for the prior two years, contact me to figure out alternatives.

Down Payments

Self-employed workers often have irregular incomes, earning a bit more one month, a bit less the next. Therefore, your savings—how much they can put down to buy a home—takes on added importance, because it demonstrates financial stability. The more anyone can put down for a home, the better—better terms, lower monthly payments, and less cost over the life of the loan. For self-employed workers, a bigger down payment will make their applications look more favorable. Nonetheless, self-employed people are free to take full advantage of low-down-payment loan options:

  • Conventional loans with as little as 3.0% down
  • FHA loans with only 3.5% down
  • USDA loans with zero down on homes in qualifying rural areas
  • VA loans with zero down for eligible active-duty service members, veterans, and qualifying military spouses

Credit Scores

Credit scores are even more important for self-employed borrowers. Suggest you review their credit report as soon as possible. That’s because if your score needs improving, it takes time. If that’s the case, I can show you the steps to take. You can get a free credit report from each of the three credit bureaus once a year at If you get a copy from one credit bureau at a time, you can get a fresh report every four months. This is the only source for free credit reports and it’s authorized by federal law. Check that all the information is correct and up-to-date, and correct any errors.

If you as a self-employed buyer have any questions about what you need to do to get a mortgage, please contact me. I'm eager to help.

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Kenneth Manesse

Helping you experience something new in Las Vegas that's guaranteed. Real Estate with less stress!....

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