Are you researching mortgage lenders for self-employed, hard-working individuals, such as yourself, who are looking to purchase a home? Especially for first-time home buyers, self-employed borrowers need to show proof of reliable, consistent income. This is the key in qualifying for great mortgage rates and home loans.
What categories of revenue fall under self-employment? Let’s examine what types of income mortgage lenders look for when offering mortgage loans to non-W-2 workers.
WHAT DO LENDERS LOOK FOR?
Mortgage lenders only consider taxable income for both traditional and self-employed mortgage borrowers.
No special requirements make it harder for a self-employed individual to get a mortgage loan. Credit score, down payment, and income standards remain the same across the board for home buying.
Can you provide proof of solid, consistent cash flow for one or more of the jobs below?
- Business owner
- Freelancer
- Contractor
- Seasonal worker
- Gig worker
- Side jobber
Then, consider yourself pre-qualified for a self-employment home loan.
Unemployment income can be considered into getting a home loan.
Are you a contractor or seasonal worker who steadily receives unemployment in your off-season year after year? If you have a documented history of receiving unemployment during your off season, then this will qualify into self-employment income.
- Income and self-employment can be proven to continue for at least three consecutive years after loan closing.
- Business prospects needs to look fruitful.
- A history of declining income will work against your chances of a mortgage loan.
- Mortgage consultants may do a business review.
Factors that can work against being qualified for a home loan as a self-employed home buyer:
- Unreliable or irregular income
- Being self-employed for less than one year, and in many cases, less than two years of proof of solid self-employment
- Business ownership of less than 25%
Factors that mortgage lenders for self-employed home buyers examine:
- State or business licenses
- Evidence of business insurance
- Relationship with a licensed certified public accountant (CPA)
- A professional organization or company who can confirm your business
Other factors mortgage lenders look into regarding income status for approving home loans:
- Current debts
- Tax returns
- Liquid savings and assets
- Credit history
- Bank statements
- Other real estate you have ownership in
BEST MORTGAGE LENDERS FOR SELF-EMPLOYED
BrightPath is leading the way in home loans for hard-working individuals like yourself. A wide range of mortgage loan options for traditional workers, as well as the self-employed, are available. BrightPath is certain that we will find the right loan for you.
Our expert team of mortgage consultants will answer any question you have, so you can start your exciting new journey of owning a home without stress and confusion.
Are you looking to put an offer in a home and need professional guidance? Buying a home is something that you definitely do not want to do alone. BrightPath’s patient and knowledgeable team of mortgage lenders will steer you in the right direction.
Get started today so you can enjoy this investment adventure with confidence. Contact BrightPath now before your dream home gets taken.
