Are You Self Employed? Here are Some Mortgage Tips for Buying a Santa Cruz Property

Posted by Lauren Spencer on Monday, July 8th, 2013 at 1:01am.

Being self-employed can sometimes make it trickier to secure a mortgage on your Santa Cruz property. However, it is not impossible.

One of the main reasons that being self-employed works against you when securing a mortgage is if you have a lack of proof of income in the form of tax records. If you are not an employee somewhere, you will not have a regular paystub that allows you to prove your earnings. You will likely receive your income from a number of different sources which can be difficult to track. Also, your freelance income or the profits from your small business will fluctuate over the years, making it even more difficult for the mortgage lender to assess.

This is why keeping your personal tax returns up to date and filed on time will be very helpful in ensuring that you are able to obtain a mortgage. You should have accurate accounts from as recent as 18 months or less and you should be able to show that you have at least two years’ worth of your company’s tax returns or accounts. You might also need to provide proof that you have ongoing work lined up in the future to maintain your income. Working with a certified or chartered accountant can help you to organise these records.

Other Ways to Get a Mortgage when you are Self Employed

There are some banks out there that are offering mortgage which are geared specifically towards freelancers and self-employed individuals. These types of mortgages will be better suited to your particular situation and will offer you a number of advantages.

Also, having a significant amount of money in your savings account can really help you increase your chances of getting approved for your home mortgage. The more you have in savings, the more likely you will be able to qualify for a lower interest rate. If you don’t already have an emergency fund saved up, you should consider starting one before you try to qualify for a mortgage.

Obtaining a mortgage on a Santa Cruz property can be more challenging if you are self-employed, but it doesn’t have to be impossible.

To find out more about buying your new home, contact me at 831.662.6522 or email me at

For additional real estate information, please visit my homepage at


certified or chartered accountant


personal tax returns

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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