Nov '24 • General discussion
Self-Employed and Have a Car Payment? Read This! 🚗💡
If you're self-employed, understanding how your car payment impacts your mortgage approval is key. Here's the scoop:
A critical part of mortgage approval is your debt-to-income ratio, which compares your income to your liabilities. Many self-employed individuals purchase vehicles through their businesses for tax advantages but then pay for them out of their personal accounts.
Here’s a pro tip: If you pay for the vehicle directly from your business account for at least 12 months, most mortgage companies can omit this liability from your debt-to-income ratio.
This simple change could significantly boost your borrowability and make mortgage approval much easier. We've seen cases where a single car payment made all the difference in a loan approval. 💼🏡
Got questions or need help with this? Let’s discuss! 👇
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Self-Employed and Have a Car Payment? Read This! 🚗💡
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