How to Buy a House in Jamaica When You Are Self-Employed

 

It’s another year, and you’re tired of renting.  You need a mortgage, but you keep running into the roadblocks of not having any NHT contributions and payslips to give the bank. If you are self-employed, these hurdles seem huge! But what if I told you that you could get your mortgage preapproval? Here’s how to buy a house in Jamaica when you are self-employed:

Hurdle 1: You Are Not Making NHT Contributions

The National Housing Trust (NHT) is crucial when buying a home in Jamaica. Most of our mortgage companies practice joint mortgage financing with the NHT.  That means that they insist on you having NHT eligibility before you can apply for a mortgage with them.

What is joint mortgage financing? The bank first applies the NHT portion of your loan (currently a max of J$6.5 million per person) and then “tops it up” with their mortgage.  For example, if the bank says you qualify for J$10 million, then J$6.5 would be from the NHT and J$3.5 from the bank.

Previously, you could visit the NHT head office to complete the process to start contributing to the fund. However, this is no longer possible. You must now sign up with the Tax Administration of Jamaica (TAJ).

How to Sign Up for NHT When You Are Self-Employed

I created a set of videos that show you how to sign up for NHT. You can do it online or go to the nearest TAJ office and sign up.

No, you do NOT need to pay someone to sign you up for NHT.  I can show you (for FREE) how to sign up to make your NHT contributions.

Here is the playlist of short video tutorials to help you sign up for NHT from the comfort of your home:

HOW TO SIGN UP TO MAKE YOUR NHT CONTRIBUTIONS

Hurdle 2: You Have No Payslips

Who is considered self-employed? NHT has a list on its site that you can check. However, I believe that everyone should pursue homeownership. Whether you are a hairdresser, makeup artist, taxi driver, or higgler, your dream of homeownership is valid and possible!

Please don’t be put off by the fact that the banks keep writing “last 3 payslips” in their list of requirements. If you are self-employed, you provide different documents. However, bear in mind that if it seems like the bank is asking you to provide the past two (or more) years worth of these documents, it is OK. They want evidence that you can afford to make your monthly mortgage payments from your self-employment.

The bank will likely ask you to provide the following extra documents as a self-employed person:

• • • Bank statements (the ones that show your self-employment income)
    • S04 forms (watch the tutorial videos for more info)
    • Profit and loss accounts
    • Balance sheets
    • Cash flow projections (vary by institutions)

Don’t worry about the profit and loss accounts, balance sheets, and cash flow projections. You would get a TAJ rep or an accountant to help you file your S04 form. These same persons can help you create these documents for the bank.

NOTE WELL: Please contact your bank/mortgage company for its list of required documents for self-employed persons.

How to Buy a House in Jamaica: Keep Track of Your Income and Expenses

You will need to create a paper trail of your income and expenses. You do this by putting all the cash you receive from your self-employment activities in ONE (1) bank account in your name.

Also, you will need to take photos of your receipts from spending related to your business line. For example, taxi drivers can write off their spending for gas and car repairs as business costs and should keep photos of these receipts. These photos and bank statements will help you file your annual S04.

Would you like me to share more about how to track your income and expenses when self-employed?

Please let me know in the comments section below. 

How to Buy a House in Jamaica: Your Next Steps

What’s next? You will need to:

• • • Start tracking your income and expenses
    • Sign up with the TAJ to make NHT contributions (watch my tutorial videos to complete the process)
    • Start contributing to the NHT
    • Make at least a year’s worth of contributions (check the NHT for more details)
    • Get your NHT eligibility letter
    • Contact your desired bank/mortgage company for details on applying for a mortgage as self-employed
    • Apply and receive your mortgage preapproval letter
    • Let the house-hunting begin!

Other Articles in This Series

Check out these other real estate articles:

Get Started on the Road to Homeownership NOW!

The journey to homeownership can seem difficult, especially when you don’t have a regular 9-to-5 job. But, I have shared how to buy a house in Jamaica – even when you are self-employed. You can make your dream of homeownership a reality.

Are you interested in learning more about how to become a homeowner? Then keep following this website.

May Jesus’ blessings, peace, and wisdom be upon us all.

Sophia.