Posted on: 09th Nov, 2006 10:11 am
If commission income exceeds 25% of the income ( base income,bonus, overtime, Commission) than the borrower is considered as self employed or not ?
Let me tell you about the general underwriting process. If you as a borrower own greater than twenty five percent of any business which is making an income then you will be considered as a self-employed.
If it is below this level then you are considered to be an employee of that business.
If it is below this level then you are considered to be an employee of that business.
Hi Mohit,
The question you have asked is a bit mixed up.
Why I am saying this is that a person earning overtime and bonus income & a base income falls under the category of salaried borrowers and the 25% qualifying criteria you have asked about is for self-employed borrowers with the 25% or greater ownership.
Though I agree with the information Hillebrt and Colin have provided. In addition you need to be self-employed for at least two years to qualify.
If your self-employment is for less than two years but more than one year then you must have at least 2 years previous employment (or a combination of 1 year of employment and formal education or training) in an occupation related to your current one.
Let me also add that if you have commission based income then you will have to provide last 2 years tax returns along with a recent pay stub.
Hope this information will help you.
God bless you
Samantha
The question you have asked is a bit mixed up.
Why I am saying this is that a person earning overtime and bonus income & a base income falls under the category of salaried borrowers and the 25% qualifying criteria you have asked about is for self-employed borrowers with the 25% or greater ownership.
Though I agree with the information Hillebrt and Colin have provided. In addition you need to be self-employed for at least two years to qualify.
If your self-employment is for less than two years but more than one year then you must have at least 2 years previous employment (or a combination of 1 year of employment and formal education or training) in an occupation related to your current one.
Let me also add that if you have commission based income then you will have to provide last 2 years tax returns along with a recent pay stub.
Hope this information will help you.
God bless you
Samantha
Hi Mohit,
The primary factor determining whether a borrower is self-employed is whether he earns through business in which he has an ownership interest of 25% or more. Whether your commission income exceeds 25% of the total income is not the determining factor.
Thanks,
Sara.
The primary factor determining whether a borrower is self-employed is whether he earns through business in which he has an ownership interest of 25% or more. Whether your commission income exceeds 25% of the total income is not the determining factor.
Thanks,
Sara.