07-26-2008 10:30 AM
07-26-2008 11:07 AM
07-26-2008 03:40 PM - edited 07-26-2008 03:41 PM
The following conditions apply to underwriting self-employed borrowers:
A. Minimum Length of Self-Employment. Income from self-employment is
considered stable and effective if the borrower has been self-employed for two or
more years. The high probability of failure during the first few years of a business
makes the following requirements necessary for individuals who have been selfemployed
less than two years:
1. Between One and Two Years. An individual self-employed between one and
two years must have at least two years of documented previous successful
employment (or a combination of one year of employment and formal education or
training) in the line of work in which the borrower is self-employed or in a related
occupation to be eligible.
2. Less than One Year. The income from a borrower self-employed less than
one year may not be considered effective income.
Not easy. You will absolutely have to use tax returns. That means write-offs reduce income.
07-27-2008 01:25 PM
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO