Veterans Homebuyers Network
Serving American Veterans

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So your Self-employed & want to use your VA Home Loan Benefits – Here’s what you need to know

If you are a Veteran looking to use your VA Home Loan benefits to become a Home Owner and are self-employed you may think that just because your business is growing & the monies are coming in that you will have no problem being approved for a VA Home Loan.   You may say to yourself – “Look at all this money my business is generating. I can afford a mortgage payment” well not so fast …..   See a VA Mortgage is what’s called a Full Document Loan – meaning that you must show proof of income. And how do you do that?  – Simple Paystubs and W2’s   Let’s face it – a lot of you self-employed Veterans have never taken the time to incorporate your company & even if you did do that – How many of you “Pay yourself “a regular Paycheck on the books of your company payroll? Not a lot of you – That’s my guess.   The thing is – without taking those actions – you may not be able to be approved for a VA Mortgage.   The reality is you write off as much income as you can as company expenses so you reduce your tax liabilities – therefore leaving you with very little company profit – therefore leaving you very limited personal income to afford to pay a mortgage with.   So you cannot have it both ways –   If you’re self-employed – you need to incorporate your business – open a business checking account – then put yourself on the company payroll at an income range that will allow you to afford a mortgage. After that you need to file both a corporate & personal tax return & make sure everything you do is above board – on the books & done the right way.   After that, as long as you have 2 years of a track record with your business you will then be a prime candidate for a VA Home Loan.   The Veterans Homebuyers Network – leaving no Soldier Behind    

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