Learn how you can get a self-employed mortgage to buy a home if you are self-employed.
Can You Get a Mortgage If You’re Self-Employed?
In 2016, the BLS recorded about 9.6 million people who had their own businesses. Despite this number, getting a home mortgage if you are self-employed can be quite tricky. While some lenders will require you to have a stable financial income, there are ways to achieve the dream of homeownership with other documentation. We specialize in offering home loans that are non-standard. Read on to learn more about the necessary steps to apply for a self-employed mortgage.
How to Qualify for a Home Loan
There are specific requirements that we look into during the mortgage process. The best part is that the requirements are not stringent, and you can likely meet many of the conditions. Here are some of the specific elements that we consider:
- Tax returns: It is vital to have your tax returns so that we can assess your financial history. Having two years of returns is a good place to start.
- Credit score: Your credit score also matters because it shows your creditworthiness and your past ability to repay debts or credit cards. Manage your finances carefully because a high score is appealing to lenders.
- Identification details: You will also need to identify yourself using your state ID card, driver’s license, or passport.
- Bank statement: We will need your bank statement in order to check your deposits as a self-employed individual. Three months of statements will show us what we need to start working with you as a lender.
- Life insurance: If you have a life insurance policy in place, this can help too, as it can cover the mortgage in case of your passing.
Ultimately, getting a self-employed mortgage is possible if you have the necessary documents along with a high credit score. Keep in mind that a self-employed mortgage may come with a higher interest rate. By having your documents ready ahead of time and staying on top of your credit score, you can help make the process of obtaining a self-employed mortgage that much easier.