The remainder of this post will go over the ways in which owning property or a business can impact your mortgage transaction.
Being on the Title to a Home When it comes to mortgage programs for first-time homebuyers, it does actually matter whether you’ve had ownership in a home before.
You have an interest if you own 1% or 100% of the property.
Owning Your Own Business Another aspect where ownership interest might come into play is if you own your own business.
If you have less than 25% ownership, while the documentation necessary can vary by loan type, there are some things to think about.
You may provide a statement regarding the extent of your ownership in the business (e.g.
It’s also a good idea to have 2 years of tax returns available with your Schedule E, which indicates other income and losses.
For this reason, mortgage lenders are very interested to make sure that the condo association is in good shape.
In a condo project, single-entity ownership restrictions are as follows: 2 – 4 units: ownership in not more than one unit 5 – 20 units: ownership in not more than two units 20 units or more: ownership can’t exceed 20% – 25% of the project, depending on the investor in your mortgage Ownership interest can play a big role in many areas of a mortgage transaction.
But now that you know how it works, perhaps you’re ready to get started on buying or refinancing a home.