The Assumption That Is Keeping Self-Employed Homeowners From a Smart Money Move

Many self-employed homeowners assume they cannot refinance easily because their tax returns do not reflect their true income after legitimate business deductions are applied. That assumption is keeping a significant number of entrepreneurs from exploring options that could put meaningful money back in their pocket every month.

Spencer Penrod is self-employed himself and he wants to be direct about what is actually available right now.

The Programs That Make Refinancing Work for Entrepreneurs

Both traditional refinance options and non-QM programs specifically designed for self-employed borrowers exist in today's market and the combination of those tools means there is almost always a path worth exploring regardless of what a tax return shows.

The goals that refinancing can address for self-employed homeowners cover a wide range. Lowering the monthly payment when rates or the loan balance have shifted enough to create meaningful savings. Tapping into equity that has built up in the property to fund business growth or expansion. Consolidating higher-interest debt into a lower-rate mortgage product. Removing mortgage insurance that is no longer required based on current equity position. Shortening the loan term to build equity faster and reduce total interest paid over the life of the loan.

Non-QM programs built for entrepreneurs can evaluate the refinance based on bank statement deposits, a CPA-prepared profit and loss statement, or other documentation that reflects actual cash flow rather than the taxable income number that traditional underwriting requires. The same logic that makes bank statement loans work for purchases makes them work for refinances.

What the Process Actually Looks Like

Spencer takes a personal look at the current loan, the homeowner's goals, and the best strategies available today to build a plan that makes financial sense for that specific borrower. The process is faster and simpler than most self-employed homeowners expect and it costs nothing to explore what the options look like.

As a self-employed borrower himself Spencer understands the nuances of this conversation in a way that advisors who only work with W-2 borrowers simply do not.

Text, call, or DM Spencer Penrod anytime for a free refinance review. Follow along for more strategies designed to help self-employed borrowers win in the current market.

Sources

ConsumerFinancialProtectionBureau.gov
MortgageNewsDaily.com
NationalMortgageProfessional.com
Investopedia.com
FannieMae.com