Mortgage Companies For Self Employed: Finding The Right Lender

If you're self-employed, getting a mortgage can be challenging. Unlike traditional employees, you don't have a steady paycheck to show to lenders. But don't worry, there are mortgage companies that cater specifically to self-employed borrowers. In this article, we'll discuss the different mortgage companies for self-employed individuals and what to look for in a lender.

Main Content

Before we dive into the different mortgage companies, let's talk about the requirements for getting a mortgage as a self-employed borrower. Here are some things you'll need:

Proof of Income

Even though you don't have a W-2 form, you'll still need to show your income. This can be done through tax returns, bank statements, or profit and loss statements.

Good Credit Score

Your credit score is important in determining whether you qualify for a mortgage, and at what interest rate. Make sure to keep your credit score in good standing.

Large Down Payment

Self-employed borrowers may need to put down a larger down payment to offset the risk for lenders.

Now that you know what you need, let's look at the different mortgage companies for self-employed individuals.

Mortgage Companies for Self Employed

Here are some of the top mortgage companies that cater to self-employed borrowers:

1. New American Funding

New American Funding offers a variety of loan options for self-employed borrowers, including bank statement loans and asset utilization loans.

2. Guaranteed Rate

Guaranteed Rate offers a program called the "Your Way Loan" which allows self-employed borrowers to qualify based on bank statements and other non-traditional forms of income verification.

3. Quicken Loans

Quicken Loans has a program called the "Self-Employed Power Mortgage" which takes into account the unique financial situation of self-employed borrowers.

4. Chase

Chase offers a program called the "DreaMaker Mortgage" which allows self-employed borrowers to qualify with a lower down payment.

5. Wells Fargo

Wells Fargo offers a program called the "YourFirst Mortgage" which is designed for first-time homebuyers, including self-employed borrowers.

FAQ

1. Can I get a mortgage if I'm self-employed?

Yes, there are mortgage companies that cater specifically to self-employed borrowers.

2. What documents do I need to show my income?

You can show your income through tax returns, bank statements, or profit and loss statements.

3. Will I need a larger down payment?

Self-employed borrowers may need to put down a larger down payment to offset the risk for lenders.

4. What is a bank statement loan?

A bank statement loan is a loan option where lenders use your bank statements to verify your income instead of tax returns or W-2 forms.

5. What is an asset utilization loan?

An asset utilization loan is a loan option where lenders use your assets, such as stocks or retirement accounts, to qualify you for a mortgage.

6. How can I improve my chances of getting approved for a mortgage as a self-employed borrower?

You can improve your chances by keeping your credit score in good standing, having a large down payment, and showing consistent income through bank statements or tax returns.

7. Can I get a mortgage if I have irregular income as a self-employed borrower?

Yes, some mortgage companies offer loan options for self-employed borrowers with irregular income.

8. How long do I need to be self-employed to qualify for a mortgage?

Most lenders require self-employed borrowers to have at least two years of self-employment income before qualifying for a mortgage.

Pros

Here are some advantages of getting a mortgage from a lender that caters to self-employed borrowers:

Flexible income verification
Lower down payment options
Loan options for irregular income

Tips

Here are some tips for finding the right mortgage company as a self-employed borrower:

Shop around for different lenders and compare their loan options
Check the lender's requirements for self-employed borrowers
Read reviews and testimonials from other self-employed borrowers

Summary

Getting a mortgage as a self-employed borrower can be challenging, but there are mortgage companies that cater specifically to your needs. Make sure to have the necessary documents to show your income and a good credit score. Shop around for different lenders and compare their loan options, and read reviews from other self-employed borrowers. With the right lender, you can achieve your dream of homeownership.

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