Self-Employed Options
Mortgage loans for individuals that own at least 25% of a business and are not a W2 employee.
In a Nutshell
What areSelf-EmployedMortgage Options?
Obtaining a mortgage loan when you’re self-employed does indeed entail different requirements that those that apply when seeking a loan as an employee that receives an annual W2 from an employer. Self-employed mortgage options are designed to help those individuals that have started or own businesses secure competitive mortgage options that get them into home ownership.
While the process and requirements may be different when seeking a self-employed mortgage, that doesn’t mean it has to be any more complicated or any less enjoyable or exciting. Your dedicated mortgage advisor will be here to ensure that you’re aware of and prepared for every step so you can get through the application and into closing as quickly as possible.
What to Know Going In
Loan Requirements
Among the different types of requirements included in obtaining a self-employed mortgage is the typical necessity of demonstrating at least two years of reliable income. Since self-employed individuals don’t receive W2s from outside sources, it’s common to have to submit financial statements for not only the borrower, but the business the borrower owns as well. Business tax returns, profit and loss statements, 1099s and K1s are common documents that are required for getting approved for a self-employed mortgage.
It’s important to note that not all self-employed situations are the same and, therefore, requirements can vary depending on your lender and your circumstances.
The Upside
Benefits of Self-Employed Mortgage Options
Like most mortgage loan types, the biggest benefit to a self-employed mortgage is access to home ownership. These options are designed to help people with non-traditional income streams and perhaps, unsteady income, gain the ability to purchase a home and invest in their future.
Specific loan types, down payment requirements, interest rates and credit score parameters will vary depending on the individual’s unique circumstances. Talking with a mortgage advisor early in the process can help clarify what someone might expect as they move forward with a loan application.
How to Determine if a Self-Employed Mortgage is Right For You
Meet with a mortgage advisor early in the process of applying for a loan to help solidify the right option for your situation. We’re here to help determine the type of loan that’s best for you.