While it seems odd, quite a few homeowners have problems quantifying and even proving what their financial resources truly are. This especially true when asked to prove an income level in hopes of obtaining a mortgage refinance.  Those most affected by the income proof qualification are the self-employed who also have resources from profit sharing or commissions or even bonuses.

Those who find themselves in this boat can often negotiate refinancing if they have at least 25 percent equity in the subject property. Under what is known as an income equity loan, an equity line of up to 75 percent is possible with no bearing on the client’s taxable income.  There are several qualifications and requirements with the foremost being that the property must be the applicant’s primary home.

Additionally, the person or persons seeking the refinance must physically reside within it. Income generating properties like a small apartment building of up to four units can be okay as long as one is occupied by the owner.  Vacation or second homes may also qualify in combination with a primary residence.

Naturally, there are credit obligations that have to be met too.  An applicant must have a credit bureau history of at least three years.  He or she needs to have other active credit reported beyond that of a gasoline or other credit card. Someone lacking another reported credit may still be able to receive a refinance with a longer credit track record of five years or better.

There is hope for those whom a mortgage refinance is needed to meet other financial obligations like education or bill consolidation. The income equity program realizes that not every homeowner has a typical salaried job and that many today rely on one or more part-time or freelance employment sources to make ends meet.  For those who do, a Calgary mortgage specialist can help if you  need find financing. Call Sybil Hope at 403 831 2246 to discuss your financing needs.