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Obtaining a Home Business Mortgage

Home business mortgages are a unique type of mortgage that offers great tax benefits. When obtaining a home business mortgage, the owner must use at least 70 percent of their home for business use. This includes a room dedicated for business purposes. The room can include business assets such as your computer, printer and desk areas.

Features - The home business mortgages should be easy for commercial and business property development. Home business loan providers may ask for proof of income. You will need financial records that will include income statements, balance sheets and tax returns. Some loan providers may want to see a business plan. Home businesses are typically launched by entrepreneurs who are boot strapping, have a small number employees or just want to keep costs low.

Mortgage Types - Business owners can choose various types of mortgages. There are interest-only loans where payments for a set period of time include only interest payments. Other loan types include FHA loans. These types of loans are issued by the Federal Housing Administration. Veteran loans are offered specifically for members of the military. Military members are offered special rate discounts. This is a great benefit for serving their country in times of conflict.

Planning - Before purchasing a mortgage, it is wise to analyse your personal financial situation. Use a mortgage calculator to assess what the monthly payments, insurance and potential taxes will be on the home. When starting a home business, it's also good to have at least six to eight months of emergency funding. Most banks will require a down payment of 20 percent on the home to even qualify.

 

 

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