Self Employed Mortgage

Today, borrowers more than ever are looking for a self employed mortgage. The self employed loan programs are very popular for business owners and professionals. Many of these home loans for the self employed have conditions the borrower must meet.

One of the additional requirements in most cases for a self employed mortgage is to get a CPA letter stating you have been self employed for at least 2 years. Borrowers are considered self-employed if they own 25 percent or more in a business.

Lenders also like to see some assets that the borrower has in order to qualify. In most cases a checking or savings account with a balance of a few months of mortgage payments may be enough to receive a self employed loan approval.

A lender will also want to see verification of a business license or some document that proves the borrower is actually in business. These type of home loans for the self employed are best for borrowers who cannot produce income tax returns or cant prove their income.

A self employed loan is available in both adjustable and fixed rate mortgages. You can have varying credit ranging from sub-prime to excellent credit. Some lenders have self employed mortgage programs where if you meet or exceed there credit score you do not need any documentation. These programs are available in fixed mortgages as well as adjustable rate mortgages. A self employed mortgage can be up to 100% financing.

Another advantage to a self employed mortgage is you will not have to worry about the ratios of debt to income. This comes in very handy for those borrowers with high credit card debt and high interest revolving charge accounts. Lenders also look for a positive outlook in the type of business the borrower is in. For instance, a business where you make bumper stickers for presidential elections might be considered to risky. Underwriters also want to make sure the borrowers income isn’t in a downward spiral.

You can get very competitive rates for a self employed loan and in some cases just as good as a fully documented mortgage.

RefinancingUSA specializes in self employed mortgages and has many programs to fit your individual mortgage requirements.