Self-Employed Mortgage Programs
What is a Self-Employed Mortgage Program?
Are you self-employed and interested in home ownership? It’s definitely possible for you to own a business as well as own a home! We understand how your financial profile being self-employed can be different from borrowers who earn a regular salary. On Q has self-employed mortgage solutions that may be able to assist you!
Who is considered self-employed?
What documentation is needed?
Some important items to prepare when looking to buy a home are:
Tax Returns including all tax schedules
IRS profit and loss statements
Recent Bank Statements
Typically 2 years of these documents are required unless you have owned and operated your business for 5 years with certain programs. See alternatives and solutions below.
Why is this needed?
Mortgage lenders are looking for the stability of income, and only the net income is considered in mortgage qualifying.
When it comes to filing your taxes, keep in mind that lenders consider your total income to be the amount after deductions and not what you have before those adjustments.
The earnings after the deductions are what is considered actual cash flow, and that is what lenders are really looking for because cash flow is what is used to pay back the loan!
Alternatives and Solutions
In some cases, the requirements for a self-employed borrower is not a “one size fits all” situation. We have special programs with our broker partners that can use alternative documentation for qualifying. These programs often have higher rates due to the risk involved without doing the standard tax return evaluation. Some of the following programs can help self-employed borrowers who don’t fit standard agency guidelines:
Personal and business bank statement program
12 month bank statement program (will also need to provide both your personal and business bank statements
Varying credit scores accepted
1 and 2 years of self-employment history options available with business and personal bank statements!
If you’ve been employed 5 years, you may only need 1 year of tax returns options available through Fannie Mae (FNMA) and Freddie Mac (FHLMC) loans.
Our goal is to make the dream of home ownership a reality for everyone! Call our Mortgage Consultants today to learn about your opportunities!
Disclaimer: On Q Financial, Inc. is an equal housing lender. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend. Some restrictions may apply. Loan approval is subject to applicant’s qualification for a loan program. On Q financial does not guarantee that each applicant will receive a loan. ONQ0618180681Y000004B3xG