How to Get a Contractor Mortgage as Per Contract Rate
A contractor mortgage is like any other mortgage. But the underwriting process makes the difference between this mortgage and others. For example, a contractor mortgage based on a fixed-term contract can allow contractors to borrow significantly more than conventional mortgages. In contrast, conventional lenders limit small business owners' financing to a "salary plus dividend" formula. But some lenders use contract rate underwriting, which is a better contractor method. These underwriters "annualize" the contractor's day rate using contract rate underwriting. Using this gross figure, lenders and contractor mortgages brokers determine how much a contractor can borrow. So if the lender is faced with anything other than the contractor's rate, it is unlikely that the contractor will get the mortgage amount they deserve. Here are the most important advantages of getting a contractor mortgage per contract rate and the ways to achieve it. The Advant