How to Refinance Mortgage with Cash Out if Self-Employed?
Summary: Home value $450K, loan balance $215, want $70K cash out. Credit score 795, no debt other than mortgage, and all mortgage payments have been made in full and on time. I’d like to refinance my 30 year fixed rate loan and tap some equity in my house. The problem is that I’m now self-employed, having started a business about 10 months ago. My current mortgage lender says “the new guidelines” say a self-employed person has to have been self-employed (or “W2” employed) for at least 2 years to get any cash out. So I seem to be stuck in the middle. I’m trying to get my business off the ground, which would make me more financially stable and less likely to ultimately default on the mortgage. Ironically, by denying me the ability to tap my equity, the mortgage company is *increasing* their risk. I’m a little annoyed that, as someone who “played by the rules”, didn’t take out a larger loan than I could afford, and kept up with my payments, I’m now being adversely affected by the new guid