Car Loans For Self Employed, Easy ProcessWhether you own your own business, or you are an independent contractor working for a company, you can verify your income with tax returns and other tax documents.If you are self employed but cannot prove your income, you will not be able to get a secured loan unless you have documented income proof like your 1099.Independent contractors and others who work on contract with companies receive a 1099 form for reporting their income instead of a W2 form. The W2 form documents wages for an employee, and the 1099 documents contract payments to the worker.If you are in business for yourself, and you need a self employed car loan, you can use your 1099 forms. This along with your tax returns, to verify your income will be sufficient to prove your income.
Auto refinance loans are a convenient way to consolidate debt or:
Valley Auto Loans uses a simple auto loan application that makes your application process fast and easy.
- get money for home improvements.
- Pay for weddings or vacations.
- Get a better APR than on the existing loan.
- Start or upgrade your business.
- Pay for an attorney and court fees.
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Auto Financing For Self Employed 1099
Besides your 1099 forms, your tax returns must show that your income is enough to carry the car note and that the income is steady over time.If you own your own business, you likely write off many of your expenses as deductions to reduce your taxable income. This practice keeps money in your pocket at tax time but may make obtaining a “self employed car loan” a bit more challenging.With a credit check inquiry, the lender could see that your creditworthiness is low due to low recorded income. This is why it is important to report a correct income amount on your taxes to keep a high credit rating.Emergencies can also arise where you may need a secured loan to purchase unexpected needs. An auto accident that has left your car totaled could put you in a situation where you did not prepare to qualify for an auto loan, but now it is necessary. Car buyers having a good credit rating with acceptable credit scores will depend on good income records from your self employed business.Self employed bad credit loans are harder to get because you have to show steady income for several years. When you complete the loan application for a car loan for self employed, you will show your net income. Keep in mind that the salary you pay yourself is generally what will qualify you or disqualify you for the loan.Self Employed Bad Credit Loans Lenders who specialize in loans to those with subprime credit require documented evidence of income.Income must be documented on professionally prepared and filed tax returns for the past two years. Additionally, your 1099 forms verify that your income has a documented source, another requirement for obtaining a bad credit loan, along with any child support that you might receive.In other words, even if you make $100 K “off the books,” this income will not help you when you apply for self employed auto loans. If this revenue is not reported correctly, there will be no evidence that you make that much income. Then again, if you have that kind of revenue, you could probably pay cash for your car.
If you are self-employed, you will need to provide your 1099 tax returns for the past few years
Minimum Income For Self Employed Car LoansLenders who specialize in self employed bad credit loans require that borrowers can prove that they make the minimum income specification set forth by the lending company. This minimum income limit varies by lender and borrower because the limit is calculated as a ratio, specifically a debt-to-income ratio.If you make $100 K per year, but your bills account for $99 K, your debt-to-income ratio is very high, and you will not meet the minimum income requirements. However, if you make $ 25 K per year, and your bills account for only $2 K, you will likely qualify!
You must be able to prove that you have an income that is at least in the defined range.As a rule, lenders who provide self employed loans to those with poor credit have documented minimum income requirement for borrowers. This minimum limit usually ranges between $1,500 and $1,800 per month. You must be able to prove that you have an income at least in the defined range, whether you are self employed, or are a W2 employee.However, even if your income falls within this range, you will still need to prove to the lender that your debt-to-income ratio is within an acceptable range.Even self employed people with outstanding FICO scores can run into problems when they apply for loans for self employed status. If their debt-to-income ratio is out of balance or if they have incurred several debts, qualifying for an auto loan can be a little more difficult at most places.Applying For a Self Employed Auto LoanWhen you get ready to apply for a car loan for self employed, gather the documentation you will need for the application. If you are self employed, get your tax returns from the past two years, along with any 1099s you have.
- What you will need and how it works.