Can Traders Get A Loan or Mortgage

Discussion in 'Professional Trading' started by Fundlord, May 6, 2015.

  1. Fundlord

    Fundlord

    Im talking about full time traders running their own personal funds, with no outside income.

    Due to the nature of trading the income is unstable and unpredictable. Say if you made 6 figures last year, deposited into you bank account, can you get a loan without an employment contract no 100% guarantee of future income
     
    murray t turtle likes this.
  2. rmorse

    rmorse Sponsor

    They will look at your tax return going back two years. They might consider only earned income. You should visit a bank and get pre-approved. Then you will know.
     
  3. No.

    It is extremely difficult for any one man business to get a mortgage without 50% plus down.

    The best way to do it is to form a LLC, or other corporate company, call yourself "financial specialist" or something, anything other than president or CEO, pay yourself a salary for several years with bank deposit proof--- then maybe you will qualify if the bank is feeling generous.
     
    VPhantom likes this.
  4. Fundlord

    Fundlord

    I have a relative who is self employed doctor, so technically a one man business. 3 mortgages, paid about 10% down on the properties. With the exception of having a 20+ year proof of income there is no guarantee business won't go bust next month.
     
  5. There are exceptions to every rule. Certain banks may "like" MD's , and he likely built a solid lending history from leasing medical offices, equipment and such-- i really have no clue. But I do know, if you go into a bank and say you are a self employed trader, you aint getting no mortgage no matter how much you make without big money down payments etc.
     
  6. Fundlord

    Fundlord

    All he did was get standard variable 20 year mortgages to buy 2 homes to lease.

    How about credit cards ? the bank I'm with just says is your income more than 18000 for the standard and 40000 for the platinum.

    I know when applying to american express you can select "investments" or "savings" as your source of income and select financial as your business and provide your accountant and bank reference. Is this a viable option for traders ?

    I just want some form of credit :(
     
  7. Generally credit cards are easy to get unless you trashed your credit-- they don't scrutinize you like for a mortgage. All it takes is a solid credit score. You dont need to prove an income.
     
  8. $18k/year? That's sub poverty level. Is that a typo?... Anyway, mortgages are moot for 'elite' traders -- they pay cash for houses. :rolleyes:
     
    VPhantom likes this.
  9. Fundlord

    Fundlord

    Nope 16000€ actually, haha they even have a student credit card, all you need is 127€ per month average turnover :confused:
     
    #10     May 6, 2015