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Mortgages for Self Employed Home Buyers

Written by Posted On Friday, 05 April 2019 12:52

Mortgages for Self Employed Home Buyers

Every year, there are more entrepreneurs opening businesses and more than 10% of all working people are now self-employed. As a self-employed individual, you have the ability to take legitimate business deductions on your tax returns. Unfortunately, that will make it difficult to qualify for a mortgage. The good news is there are some new programs out there and you can find a self employed mortgage.

Mortgage Programs for Self Employed

While many self-employed home buyers believe they have few mortgage options, the reality is there are actually more programs available to those who are self-employed versus for those who are not. Self-employed borrowers have access to all of the conventional and government programs in addition to the ones that are only for self-employed.

Conventional Mortgages – If your credit scores are above 620 and you have a down payment of at least 10%, then you can qualify for a conventional loan. This is a full documentation program which means you will need to qualify based upon the net income of your tax returns.

Bank Statement Loans - Bank statement loans are for self-employed borrowers who cannot qualify using the net income on their tax returns. You will provide 12-24 months of bank statements showing a flow of deposits that will be used as a basis to qualify for the mortgage.

FHA Loans – An FHA loan is also available to self-employed individuals. However, FHA lenders will require that you fully document all income and assets.

VA Loans – If you are a self-employed veteran, you can take advantage of this great government loan with no down payment requirement. Once again, you need to fully document your income and assets.

USDA Loans – If your new home is located in a USDA approved rural area, you may qualify for this zero down payment program if you can qualify by documenting your income and assets.

These are just a few of the mortgage options available to you if you are self-employed. Regardless as to which mortgage program you ultimately choose, it is important to prepare yourself financially well before you speak with a loan officer.

Additional Resources

Best Mortgage Loan Options for Self Employed Buyers

Top Mortgage Products for Self Employed Borrowers

Self Employed Home Loan Options

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Eric

Dream Home Financing is like a boutique lending tree. We have been matching borrowers to lenders for 15 years. We can help with all of the basic programs such as FHA, VA, USDA, conventional and more. However, our specialty is all of the niche programs. Stated income loans, bank statement loans, programs for recently divorced individuals, and more...

https://dreamhomefinancing.com

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