Being self-employed has unique challenges, including finding mortgages. While many mortgage providers will say otherwise, Elite Mortgage Group LLC professionals can help you loan programs specifically designed to accommodate the unique financial situations of self-employed individuals. Here are a few mortgage options for self-employed borrowers:
Types of Loans
These loan programs consider your bank statements rather than traditional income documentation such as tax returns. Lenders analyze your business and personal bank statements to determine your income and ability to repay the loan.
Non-Qualified Mortgage (Non-QM) loans are designed for borrowers who may not meet the stringent requirements of traditional qualified mortgages. These loans consider alternative factors, such as bank statements, asset depletion, or higher debt-to-income ratios, to evaluate your eligibility.
Portfolio loans are mortgages held by lenders in their own portfolios rather than being sold on the secondary market. These loans offer more flexibility in underwriting criteria, allowing lenders to consider individual circumstances and evaluate self-employed income more holistically.
If you have a solid track record of self-employment with consistent income and strong financials, you may still qualify for conventional loans. Demonstrating stable income, high credit scores, substantial reserves, and a lower debt-to-income ratio can help strengthen your application.
Being a self-employed borrower, you may need to provide additional documentation to support your income and financial stability, such as profit and loss statements, business tax returns, and/or a letter from a certified public accountant (CPA). Working with a knowledgeable mortgage professional, such as Elite Mortgage Group LLC, who is experienced in working with self-employed borrowers, enables you to navigate the loan process, understand the specific requirements of each loan program, and find the best mortgage option tailored to your needs as a self-employed individual.