And they thought they were forgotten: There’s help coming very soon for the self-employed who want to buy a home in Arizona.
When the real estate market crashed in Arizona, so did the chances of the Valley’s self-employed being able to buy a home with anything other than cash.
Previously, they could utilize loan programs that were termed “stated income.”
Kim Harland with PrimeLending told KTAR News 92.3 FM’s That Real Estate Show there were abuses within the program that were revealed to the world.
“People had stated income that was not accurate and predatory lenders took advantage and put people in loans they really couldn’t qualify for,” she said.
For those rotten apples, the rest of the apple cart paid dearly.
Since 2008, lenders have locked down the vaults when it comes to lending self-employed people money to buy a home. Normally, income for the regular employed is verified on tax returns. That’s tough for the self-employed because they write off so many expenses.
Now, things are changing.
There are some lenders jumping back in to assist them buy a home. PrimeLending is one of the few deciding to take the risk. The program is not out yet, but they’re working on one that will use the deposits from bank statements to verify income.
“This is fantastic news, as the self-employed have really been under served in the mortgage world since the meltdown,” Harland said.
Join Realtor Diane Brennan for That Real Estate Show Saturdays at 8 a.m. on KTAR News 92.3 FM.