February Newsletter: Getting an ijara mortgage and self employed? Here’s a few excellent tips - ijaraCDC

February Newsletter: Getting an ijara mortgage and self employed? Here’s a few excellent tips

As the American economy recovers from what many consider to be one of the greatest recessions since the 1930s, getting ijara financing to buy a property of your own is a good idea. However, the new employment landscape is a bit different than the one we were used to before 2008 and with many self-employed people looking to get an ijara mortgage there are a few prerequisites you’ll want to know about if you are in this category. One of the first things you’ll need to know is that getting ijara financing is easier when you know how to put together a package that will present lenders with the information they need.

  • Documentation is one of the most important aspects of an ijara mortgage. When you’re self-employed that means that you’ll need to have at least several years worth of taxable income verified and the taxes on that amount paid before any lender will start to look at you for a mortgage. Along with being able to prove that you have a viable business, it’s quite possible that you’ll need to have a bigger down payment than the average person looking for an ijara mortgage who has an employer.
  • Getting ijara financing also means you’ll need to have all of your deduction receipts in order and put in a presentable fashion since the government will base your taxable income by subtracting this amount and in turn the lender will decide how much of an ijara mortgage you can get.

When all is said and done, getting an ijara mortgage from a traditional lender is a bit more difficult but far from impossible for self-employed people.