| Those of you who are among the ranks of the | | | | reasonable. |
| self-employed may have already learned that it is | | | | Right now, self-employment is becoming more popular. |
| more difficult to get a loan - let alone a home equity | | | | Many lenders still do not have ways to provide for the |
| loan. The good news, though, is that it is possible. Here | | | | needs of those of you who are in this category. New |
| is some information and tips about how you can get a | | | | products are being developed, though, to meet the |
| home equity loan if you are self-employed. | | | | rising numbers of those who are leaving the |
| The truth is, first, that you will find it more difficult to get | | | | commercial workplace. It may take a while, however, |
| a loan because you are self-employed. The primary | | | | before there is some serious competition and a |
| thing that the lender will want to see is proof of a | | | | lessening of the stricter requirements. |
| profitable income. Some lenders will make it more | | | | Home equity loans can be obtained either as an |
| difficult than others when you try to prove it. You may | | | | adjustable rate mortgage, or as a fixed rate mortgage. |
| be asked by one lender to provide statements for two | | | | You will have to calculate which one is more |
| years, and another one may ask for three years | | | | advantageous for your situation, and consider the |
| worth of proof. This means that you can probably rule | | | | possibility of rising interest rates now. |
| out a no doc loan, too. | | | | Something that you will need to especially consider is |
| Another thing that you will need to watch for - | | | | that a home equity loan adds another monthly |
| concerning your own finances - is how much debt you | | | | payment to your bills. It also is secured by your home, |
| already have. All lenders look at the debt-to-income | | | | which means it puts your home at risk if you should |
| ratio when considering giving a home equity loan, and | | | | default on the loan - for any reason. Remember, also, |
| usually require a maximum of 36%, which includes all | | | | to leave 20% of the value of your home's equity |
| mortgages and loans. It seems, though, that it may be | | | | untouched in order to not have to pay private |
| a good idea to stay as far from this number as | | | | mortgage insurance. |
| possible when you are self-employed. | | | | You may find that one or two lenders will definitely |
| You will also want to check over your credit report | | | | give you a higher interest rate. By looking around, |
| before you apply, to make sure that there are no | | | | however, and getting several quotes, you can find a |
| inaccurate statements on it. Correcting these is not too | | | | lender who will give you the home equity loan you |
| difficult, once the problem has been resolved, but you | | | | want - with reasonable rates. Compare them carefully, |
| will need to wait about two months before the | | | | noting things like the interest rate, the fees, and |
| corrections actually show up on your credit score. If | | | | repayment terms. Also watch out for any home equity |
| you have less than two years of good, solid income, | | | | loan that has a prepayment penalty in it - you don't |
| you will most likely have to pay a higher interest rate. | | | | need it. |
| A good credit score, though, will help this to stay | | | | |