Self Employed Mortgage Programs
Bank Statement and Stated Income Loan Products For Business Owners
Our Business Owner Mortgage products are available for self-employed borrowers to purchase or refinance their home. Our programs allow our in house team to utilize personal or business bank statements in order to calculate your income without the requirement of tax returns.
- Available For Purchase Or Refinance
- Primary, Second Home, or Investment Properties
- Options For “1099” Independent Contractors
Applying for mortgage when you’re self-employed and you want to buy a home isn’t much different than any other application. Lenders consider the same factors for a self employed borrower as they would for a W-2 borrower. These things include:
- Your Credit Score
- Your Current Debt
- Assets and Income
So what is different about analyzing a self-employed borrowers application. Well, when you are employed by someone else, your lender with check with your employer to verify the amount and history of your income, as well as to ensure the likelihood that you will continue to earn it. When you are self-employed, you’re responsible for providing the appropriate income verification information.
What Do We Look For?
Generally speaking, in analyzing your file, our team will be looking for:
- Income Stability
- The Financial Strength of Your Business
- The Ability of Your Business To Continue To Generate Sufficient Income Moving Forward
- The Location and Nature of Your Business
In order to verify this information, the documentation required for a self-employed borrower is a bit different than a traditional borrower. What we are looking for it a history of uninterrupted self-employment income, generally for at least 2 years. Some letters or emails that may be needed as part of the verification process may be from:
- Current Clients
- A Licensed Certified Personal Accountant (CPA)
- A Professional Organization
- The State In Which You Hold A Business License
Once your business and employment has been verified, there is still the additional need to provide proof of steady and reliable income. Some documents we may request in order to analyze your income may include:
- Personal Tax Returns
- Profit and Loss Statements (may include a Schedule C, Form 1120S or K-1)
- Business Bank Statements