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No Comments » Written on September 23rd, 2011 by
Categories: BenefitsForConsultants

 

Refinancing your home as an IC (Independent Contractor) can be a major hassle.  And even after you jump through all the hoops, it’s not a sure thing that you’ll qualify. Some of the items that you need when you refinance as an IC are: signed individual tax returns and all schedules from the past 2 years, signed federal tax returns and all schedules for the past 2 years, a year to date balance sheet, a year to date profit and loss statement, and a business credit report.

After you collect and send all of those documents in, the bank doing your refinance must evaluate your income. There are 2 steps to this. One is meeting the required debt to income ratio, and the other is looking at your annual income. If your income has declined in the past 2 years, you will most likely not be eligible to refinance even if you meet the debt to income ratio.

Food for thought!

Written by Amanda Freeman, a Consultant’s Financial Planner

 

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