Self-Employed Borrowers

Self-Employed Mortgage Benefits

This type of loan allows people who might be able to afford to purchase or refinance a home when they don’t have traditional employment or wage-earner income. Good option for those who are an independent business owner, contractor, or freelancer of any type. Depending on their financial situation, a self-employed individual is eligible for a variety of loan programs including Conventional, FHA, VA, USDA, or hard money loans. Each of these loan programs offer their own benefits. FHA loans, for example, are often used by first-time homebuyers due to the lower down payment requirements and more relaxed credit requirements than Conventional loans. Conventional loans, meanwhile, may be a more cost-effective option if you are able to qualify for one. 

How Can I prove I have Self-Employed Income?

Self-employed borrowers can use a few different items as proof of self-employment, such as their tax returns or bank statements.  

Why Is Difficult for Self-Employed Individuals to Get a Loan?

If you are self-employed, it may be difficult to qualify for home financing because you may not meet the minimum eligibility requirements or have the traditional documentation necessary to prove income but we are experienced and prepared to help self-employed individuals navigate the mortgage process.

What Should I Consider Before Pursuing a Self-Employed Mortgage?

  • Keep personal and business bank accounts separate to make it easier for your lender to look over your financial liabilities
  • Resolve any reporting errors on your credit report before applying. Lowering your credit utilization rate or consolidating debt may help increase your credit score
  • Avoid making big purchases prior to your loan closing as it may impact your credit score or affect your ability to qualify for a loan.

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