Sharia compliant loans and the self employed
Sharia compliant loans are the methods that many Muslims use to get proper financing for their homes. If you’ve already looked at the other information that is available on this website, you already have a basic idea about what you need to do to get a sharia mortgage as far as general requirements go for people who have a more traditional job.
Things are a little different for the self-employed that are trying to get Sharia compliant loans. Following are a few things these folks need to do to make sure they have their requirements ready to go. Keep in mind that it is harder to qualify when you are self-employed but taking a few of the following tips to the heart can increase your chances dramatically.
- Working on your credit score will help. If you have a good score already you might stand a better chance of getting a sharia compliant loan with a low-interest rate. However, if your credit score needs a little work you should look into the techniques that will help to make it more attractive to prospective lenders like paying your bills on time.
- Putting together a large down payment makes you more attractive to any financial institutions when you are self-employed. Whether you are looking at Sharia compliant loans or the more traditional Western variety, a large downpayment convinces lending institutions that you have equity invested in your business and are less likely to walk away if there is a downturn.
- Having a good track record when it comes to self-employment will also make you more attractive when you are trying to get sharia compliant loans. It is important that you have documentation that shows that you have been in business as a self-employed person for at least two years.
Sharia compliant loans are available to those people who are self-employed but you need to document everything carefully. You should be able to provide a series of profit and loss statements as well as other types of documentation stretching back several years when you are hoping to get Sharia compliant loans.