I'm self-employed. I sell on ebay but have a registered business. I've only been doing this for about 4 months. How long do I have to keep making what I'm making before it is considered my regular income?
And does that become a problem in getting a mortgage?How long do I have to keep up my regular income I make now for it to be considered my standard income and does it help showing bank statements etc or does it come down to how long I've been filing taxes, since I have no boss they can speak with? Or does it come down to just showing my income? Will the bank consider it an income that could vary and so I'm worse off for a mortgage or loan?
2007-12-22 05:13:20 · 2 answers · asked by Anonymous in Business & Finance ➔ Credit
The first poster is correct, it's the same in my business, if the lender need to verify your income they will want 2-years of tax returns.
The really bad thing is in my business my lenders go off of line 31 of schedule C which is your adjusted income after all deductions.
It's not uncommon for people that are self employed to only make a few thousand dollars a year after all of their deductions are taken out.
If your credit score is high enough and your credit profile is solid, you may not have to prove your income.
2007-12-22 05:46:13 · answer #1 · answered by ? 7 · 3⤊ 0⤋
Usually, reputable mortgage lenders will want to see two years' worth of tax return papers from someone who is self-employed in order to consider that full-time, reliable income.
2007-12-22 05:41:09 · answer #2 · answered by YSIC 7 · 4⤊ 0⤋