When you need a loan for a car, or if you are buying a new house, or move to a different country, then usually all you need to do to prove that you have the financial stability to pay back the loan. However, if you are self-employed, then it becomes a bit complicated.
In your proof of income letter, you need to give an in-depth description about what you do, and how you handle the money, and how much you earn annually.
Along with that, you should enclose proof of the monetary exchange between you and your customers. You also have to include facts that prove that your income is stable, and the status of your self-business or service.
If you have all the proofs and facts and you have been documenting yourself financially, this letter will be a breeze for you to write, if you have a letterhead, it would be an excellent add-on:
Sample Proof of Income Letter for Self Employed
352 Workman Street
Staten Island, NY 52144
June 20, 2018
Mr. David Hanley
1972 Lady Drive
Staten Island, NY 10306
Re: Proof of Income for Loan (Self-employed)
Dear Mr. Hanley:
I am writing this letter as a proof of my income and financial stability, to be eligible for the house loan I have requested from you. I am self-employed and work as an independent carpenter and wrought ironsmith from my home.
I am currently working on more than 50 large projects, including sculptures and custom-designed furniture. Depending on the scale of these projects, I typically earn from $10,000 to $100,000 per project. Along with these, I do several smaller projects such as designer wooden or wrought iron frames. I cater to both homeowners and businesses and occasionally get a contract as a consultant with furniture companies.
I have been working for ten years, and have made my place in the market, and currently own a secure financial position. I have enclosed a bank statement, along with a list of projects I executed last year with their earnings. I made a total of $302,500 after tax deductions. The least I have earned since I began was $100,000 a year. This makes me eligible to pay the quarterly installments of $25,000 until the loan is paid off.
Please let me know if there is anything else that you require to process my application.