Self-Employed Mortgage

The self-employed sometimes have the mistaken impression that getting a mortgage is something that is out of reach for them. The truth is, that if you approach a big-bank style lender on your own, it may in fact be more difficult for a self-employed person to get a mortgage than it would be for someone in a more traditional employment scenario. However, with scores of people across the country now working for their own businesses, there do exist alternatives for people in this situation.

Our brokers have the knowledge of the industry needed to connect self-employed people with the lenders who will work with them. The truth is that the situation of every self-employed person is different. We look at all of the elements that make someone a good candidate for a mortgage, not just the job that they’re currently employed in.

There are different types of mortgages that work for self-employed people. A low documentation mortgage uses different criteria than traditional mortgage assessment. If you can show a history of your self-employment and have a clean credit report, this might be the right option.

Self employed people can do several things to help put themselves in a more advantageous position when applying for a mortgage.

• Create a larger down payment, you can open up some other mortgage options that might not be available to other people. With a 25% down payment, no-income options are also possibilities for our agents to look into for you.
• Build a strong credit history. Have a credit card or installment loan and pay it down on time, keeping balances as low as possible. A good credit history shows lender’s you’re a responsible borrower.
• Be self employed for 2-3 years. Keep very good records of your income during this time to strengthen your application.
• There are some lenders that will give you a mortgage using what is called stated income. They will go up to 90% Loan to value, however you must have been registered with your company as self employed for 2 or more years.