Self Employed Mortgage and Home Loans


Self Employed Mortgage and Home Loans


Can You Get a Home Loan If You Are Self Employed ?

Self-employed borrowers continue to seek no documentation home mortgage loans for stated income refinance options. These borrowers need simple and easy limited documentation loans.

Refinance Options with No Documentation or a Stated Income Loan

  • Stated Income Non-Conforming Loans
  • No Income No Asset Home Refinancing
  • Reduced Doc Mortgage Refinance Loans
  • Stated Income/ Verified Assets Refinance
  • Limited Documentation Jumbo Loans
  • No Doc Home Equity Loans
How I Self-Employment Income Calculated for a Mortgage?

Banks and mortgage lenders typically evaluate your income over the past two years when considering mortgage applications, especially for self-employed individuals. In the case of self-employment, it’s your net profit that matters, not your gross income the total income remaining after deducting expenses.

If your income increased in the second year, lenders often calculate an average of the two years. However, if your income decreased in the second year, they may base their assessment on the lower-earning year. Lenders may express caution if there’s a significant drop in income, so be prepared to provide an explanation if needed.

Self-Employed Mortgage Requirements

In general, Fannie Mae and Freddie Mac guidelines dictate that borrowers should have a minimum of two years of self-employment income to qualify for a mortgage. Exceptions may exist for those self-employed for just one year if they meet additional criteria, such as having worked in the same occupation in the preceding years with comparable or higher income.

If there are less than two years of business records, anticipate a more thorough examination, and verification of any prior employment will be necessary.

Private money lenders typically have less income requirements and many will use 24 months of bank statements rather than 2 years of tax returns. These are called non qualified mortgages. These non QM lenders offer no income mortgages and bank statement loans for borrowers that meet their lending criteria.

Document Requirements for Self-Employed Mortgage Programs

While specific requirements can vary among lenders, be prepared to furnish the following below:

  • Government-issued identification.
  • Complete personal tax returns for the past two years.
  • IRS Form 4506-T, granting permission for third parties to access your tax records.
  • Earnings statements.
  • Bank statements for both business and personal accounts.
  • Statements from asset accounts, including retirement or investment accounts.
  • Business license.
  • Monthly mortgage statement.

Self Employed Borrowers Enjoy No Doc Cash Out Loans

The number of start-up business operators, independent contractors and self-employed consumers continues to grow rapidly in this ever evolving global economy. Therefore, the demand for reduced documentation that allow self-employed borrowers to state their income has increased significantly. Millions of borrowers need self-employed home loans to finance 2nd properties, refinance mortgages or get access to cash out for debt consolidation.
We can help you find loan companies, banks and lenders that offer self-employed mortgage programs for home buying or refinancing.
Refinance into a Reduced Rate Home Loan and Get Cash Out for Your Business!
These reduced documentation mortgages have become more difficult to qualify for because of the recent increase in home loan defaults from self-employed homeowners. BD Nationwide continues to find lenders that provide alternative home loans that help self-employed borrowers secure the financing they need without making them jump through hoops that traditional lenders require for non-salaried income borrowers.