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How Hard is it to get a Home Loan When You’re a Blogger?

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One of my biggest concerns when I switched to being a sole trader and earning online, was the implications it might have for my financial future.

Would banks still give me loans? Would I be able to get a decent sized credit card?

I was pretty anxious; because before we decided to become location independent, I was very interested in investing in property in the next year or two. As we’ve decided to travel for the next few years, this is not such a big priority.

In the back of my head I keep wondering “How hard is it to get a home loan when you’re a blogger?” – I didn’t want my career choice to get in the way of oneday owning a home.

I think I got the answer to this question, indirectly, when I applied for my latest credit card and was instantly given a $25,000 limit. Although I instantly decreased my limit to $10,000 I felt really relieved because I had been given such a big credit.

“It’s probably not going to be that hard to get a home loan as a blogger!”

Of course I’ve not applied for a home loan, so I can’t speak from experience. Through the credit card application I got a few clues as to how to make getting a home loan when you’re a blogger easier:

1) Try a few Different Companies
While blogging is a relatively new career, there’s actually a lot of us out there that earn our full income from blogging. Chances are, banks have seen a few of us before you go in to apply. I actually wrote down my career as online advertiser instead of blogging because I feel like advertising is a little more socially acceptable as a career choice – not that there’s anything wrong with blogging. I think it will be important to apply to a few different loan companies to see what options are available to you. I’ve personally heard great things about IMB home loans from my friends in Australia, but obviously it will depend on where in the world you are based. Chances are some companies will be blogger friendly and others might not be.

2) Wait until you have a Year of Online Income
The bank will probably want to see that you have a solid, consistent stream of income before granting your loan. If you can provide a year’s worth of income reports – two years is even better – they will be more likely to take your application on board. If you are a few years out from buying a house, earn online and know that you definitely want a mortgage soon, perhaps it would be wise to switch your banking to a bank you would get a mortgage with. That way the bank will have full access to your income before you apply for a loan. It will probably make them more confident in loaning you the balance of your home.

This is also important for you too. A year’s worth of income will give you a better idea of how you your income will be; is it progressing? Declining? Staying the same. You need to know what your income is likely to be so you can properly plan your mortgage and minimise your costs.

3) Make Sure You REALLY Want to Live There
I’m SO glad we didn’t buy a house; firstly because we’re planning to leave for a long time and be location independent. Secondly, because we would have to be tax residents of New Zealand if we had a home here. We want to pay no taxes, legally, so owning a home in New Zealand would have stopped our plans. As a blogger you can live anywhere you want! You can be location independent, soak up the sights and sounds of another country, feeling like you’re forever on holiday for probably cheaper than it costs to live at home. That will certainly be a lot harder if you own a home, not only for the tax reasons, but because you’ll need to cover your mortgage, insurance, rates and so forth when you’re out of the country. I can’t wait to own a someday, but for now I’m glad we haven’t bought one yet.

I think as long as you have a few years worth of statements from your online income, a decent deposit and have a good credit rating, then you shouldn’t have any problems getting a mortgage on a blogger’s income.

What do you think? Have you had any personal experience getting a loan on a blogger’s income? Share in the comments below!

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8 Comments

  • Michelle says:

    This is something that I really had to think about when I decided to leave my day job to pursue full-time freelancing/blogging. We already have a house, but we bought it knowing that it would just be a starter home. I’m really hoping that when we go house shopping in a few years that it won’t be too bad!

    • Christine says:

      I’m glad I’m not the only one who was thinking of this well in advance! Does Wes work online? My partner does so I feel like we have to be even more careful, but I think by the time we’re ready to buy we’ll have a lot of history that will make us good candidates!

  • Will says:

    If your blogging work is setup as a proper business, getting a loan should be fairly painless.

    My cousin owns a (successful) business and it bought the house he lives in. He pays the business back with his ‘salary’. It works really well.

    • Christine says:

      I’m just a sole trader which is usually the smartest option for self employed bloggers as you don’t pay as much in taxes as a business (depending on where you live)… I think you definitely need a few year’s proof of income, but thankfully I wont be looking to buy for a few years and would rather do so in cash!

  • As I think more about freelancing full time, getting a loan is definitely a concern for me. My partner and I intend to purchase property in the next year so the timing is tricky. However, he has a full-time day job and doesn’t intend on leaving anytime soon so at least he can prove a stable income.

    • Christine says:

      I think it would definitely be a LOT easier if one of you has a traditional job. When I applied for my credit card they wanted two year’s worth of proof of income, so I had to use a combination of my blogging income and my previous income. Just something to keep in mind but it sounds like you’re already onto it 🙂 Good luck for the big buy!

  • Pauline says:

    I got a mortgage and credit cards before I left my job, which was much easier. As a self employed they would have asked for 2 years of revenue, so basically you can’t buy anything for two years.

    • Christine says:

      Yeah I think two years is about standard. So wise that you did it before you become self employed!!! Thanks for dropping by Pauline.

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