Loans for Self-Employed Borrowers

There are several Mortgage solutions for Self-Employed borrowers.  Some self-employed borrowers can fully qualify with Tax Returns, while other business owners or 1099 Contractors require different options for income qualifying.  Edge Home Finance offers programs to fit most Self-Employed situations.  I will help you explore the different options, evaluate your usable income, and find the solution for your specific needs.

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Self-Employed Loan Options

Conventional Loans

Conventional mortgage loans are normal fixed or adjustable mortgages that require the normal income verification to qualify.  For Self-Employed borrowers or 1099 earners, this requires 1 or 2 years of income tax returns.  The loans are the best option if income can be fully verified.  They have the lowest rates and offer the lowest down payment options as well.

Conventional Loan Specifics:

  • Credit Scores down to 600
  • Options up to 97% Financing
  • Owner-occupied, second homes, and non-owner occupied
  • Full Income verification required
  • Fixed rate options from 10 to 30 years
  • Adjustable rate options – 3 / 5 / 7 / 10 Year options

Bank Statement Loans

Bank Statement Loans are loans that allow Self-Employed or 1099 borrowers to qualify using personal or business bank statements instead of tax returns.  During underwriting the lender will collect 12 or 24 months of statements and total all business-related deposits.  They will then use an expense factor, normally 50% but other options available, to show business expenses.  The remaining total is used to calculate monthly qualifying income.  If you are Self-Employed or receive a 1099 and are seeking a home mortgage with an alternative way to qualify, a Bank Statement Loan might be the right program for you.  *** Bank Statement loan options are for Self Employed borrowers only.  There are specific requirements to prove self-employment with options for 1099 earners as well.

Bank Statement Loans Specifics:

  • Credit Scores down to 600
  • Options up to 90% Financing
  • 12 or 24 months business or personal bank statements
  • Purchase, Cash-out, or Rate-term refinance
  • Owner-occupied, second homes, and non-owner occupied
  • 1099 Option Available
  • Two year wait post foreclosure, short sale, bankruptcy or deed-in-lieu
  • Rates are 30-year fixed
  • Two years self-employed required
  • Borrowers can own as little as 50% of the business for business bank statements and 25% for personal bank statements

 

DSCR – Investment Property Cash Flow Loans

Investment Property Cash Flow loans use the cash-flow from the subject property to qualify for the loan. They do not require any personal Income Taxes to qualify. These loans are for investment properties only and are a great way to start, or expand your Real Estate portfolio.

DSCR Loan Specifics:

Have questions?  Give us a call!  I would be happy to answer all of your questions and see if this program is a fit for you.

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