Hi All -
I am currently a W2 employee, renting an apartment and own no real estate. I hope to acquire a business (with SBA 7a) in the next few years. Upon acquisition, I'd ideally purchase a home sometime in the following year (in closer vicinity to the business). Two questions:
1. Will having no real estate collateral at the time I apply for the SBA loan make qualifying for one more difficult?
2. Will the SBA loan inhibit my ability to qualify for a mortgage? Let's assume my W2 salary and CEO salary will be equivalent.
Thank you!
SBA Loans and Mortgages
by a searcher
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As for qualifying for a home mortgage, it really depends on what your financial position looks like post closing. Lenders are going to want to see enough income flow through to you personally to support a home mortgage. If you are showing losses on the business and not showing much cash flow, it could be hard to qualify for a residential mortgage. Just the fact you have the SBA loan does not impact that but the cash flow the business is throwing off to you personally. So long as you have the personal cash flow to support a home mortgage you should be able to qualify. I hope this helps. Happy to discuss in more detail at any time. You can reach me here or directly at --@----.com Good luck with your search.