Being in debt can be crippling, though it doesn't have to be. Paying off debt can be done successfully if you want it and take action to kill it for good.
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If the self-employed applicant hasn't been in business for two years, he likely won't be eligible for a home mortgage. There are some exceptions to this standard but they only occur if the applicant can present evidence of a full year of self-employment through tax documents in addition to W2s from his previous employer.