How do you purchase a property when self employed?

Question

Now, I am 19 at this very moment, 20 next month. I know where I want to be, and am taking the steps to get a business loan and work towards setting up a dog training facility, specializing in behavior issues and offering puppy classes. I am trying to ensure I have a plan and my life is in order. What I am hoping...

Answer 1

The key change for self-employed workers is the need to prove your income to any mortgage lender you apply to. Most will want to see at least two years’ accounts or tax returns. The more accounts you can show the better.You’ll need…

Two years’ accounts
An accountant
A track record of regular work
A healthy deposit
A good credit history..

Answer 2

It would be to your advantage to find a local mortgage lender and discuss the necessary qualifications in Canada to purchase a property in Canada.

In the United States you would need to prove a minimum of three years of self employment income with filed federal income taxes. This might be the case in Canada.

Normally you would be able to obtain literature from a local mortgage lender that would indicate the local requirements to be approved for a mortgage loan.

In some instances you are able to find the qualification by checking the internet.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

Answer 3

You will need a MINIMUM of two years worth of tax returns showing your self-employment income that meets lender requirements. Lenders do NOT finance vacant land. You could purchase a small farmette in the country, a house on several acres.

Answer 4

with money

Answer 5

You'd need to show them two years of tax returns with enough income to qualify, and your written business plan, and have a couple years experience in the field in positions of responsibility

Answer 6

(1) earn enough in a short time so you don't need a mortgage. Yes, it's possible, but not easy.
Not sure if your chosen business would make it possible -- your time is too limited, so you'll need to find ways of making more hours that you get paid for. Think of it this way: you have about 2000 business hours a year, and you'll be lucky to collect for about 1200 of those hours at your full rate. Not sure what you can charge, but even at $100 per hour, $120,000 doesn't stretch as far as it may seem/

(2) develop a decent record over two to five years showing that you have a steady income that can support a loan or mortgage. You'll need to keep accurate accounts (including bank verification) that show you can continue to pay the mortgage you get for at least a year (preferably longer)

Answer 7

The same as others. You need proof of income, over a period of years. Any loan you have and other expenses will be taken into account. Start earning and saving, as no lender will lend to anyone who doesn't have a decent amount of savings.

Answer 8

I've been self employed for 30 years...getting a mortgage was never a problem. Your tax returns prove your income.

That being said, at 19 you do not have enough self-employment income history for anyone to lend to you. You will need a few years of tax returns that show adequate income from your business and you'll also probably need a current year profit/loss statement.

How much money do you NET (not gross) from your business and how long have you been making that? You didn't say...

You'll need to meet the other normal lending criteria such as credit score and adequate down payment.

Answer 9

You need 2 years of taxes to show steady income.

Answer 10

Generally speaking, you usually need 3 (as opposed to 2) years of self-employment with documentation in order to obtain a mortgage. At your age...that's not going to happen.