Self-employed? You already know that getting a mortgage loan is a challenge, even if your business is doing well.
Many lenders are so risk-adverse that they only offer traditional "qualified mortgages" with their traditional requirements. There's no consideration of the differences between self-employment income and being on a company payroll.
But for the self-employed, there are alternatives in today's market, non-prime loans that recognize the self-employment difference and have developed alternatives for income verification.
Is a Non-Prime right for me?
- 12-24 months of personal and/or business bank statements used in lieu of income tax returns
- Average monthly income calculated from total of 12-24 month period
- Borrowers with a lower credit rating
- Credit scores down to 500 may qualify
- Loan amounts up to $1.5 million
- Recent credit events such as bankruptcy, short sale, foreclosure and history of late payments are acceptable
- Single-family homes, townhouses and condos are allowed
- Fixed and Adjustable Rate Programs available
If you're self-employed and need a mortgage, check out a loan product that allows for bank statements to verify income – it may be your best choice.