Did You know that Freddie Mac DOES NOT always require a business loss to be analyzed or weighed against the Borrower?
When a Borrower has a primary income source ( non self employment salary) and a business loss from a self employment business that income or loss does not require any further documentation or review.
Example: Borrower is a firefighter but has a home inspection business on the side and shows a loss, the loss does not need to be looked into any further.
When a Borrower DOES NOT have another primary source of income other then self employment then any type of income or loss requires further review and documentation ( i.e. personal and business tax returns, etc)
The standard methods of confirming a business are not available?? Freddie accepts at least one month of business bank statements to confirm the existence of the business.
We are always looking for innovative ways to get borrowers into a home or refinance a property. The example above is just one way that we found was able to qualify borrowers for a mortgage loan. Feel free to reach out to us and run your scenarios by us.