Frequently asked questions on self-employment home loans or stated income loans.
Question: How good does my credit have to be?
Answer: You need a minimum credit score of 600 to be eligible for a stated income self-employment home loan. Past credit issues may be okay
Question: How much can I apply for?
Answer: Home loans up to $3 million and a minimum of $150,000.
Question: Is there a prepayment penalty?
Answer: No.
Question: What if I have had a foreclosure in the past?
Answer: Foreclosures, short sales, bankruptcies, deed in lieu, are all okay with letter of explanation, some limitations apply.
Question: Can I purchase a townhouse or condominium?
Answer: Non-warrantable condos are considered but townhouses and 2 to 4 unit condos and multiplexes are eligible.
Question: Can I use this for a home equity loan?
Answer: No, only for purchase or refinance.
Question: How fast is the closing?
Answer: Closing time can be in as little as three weeks.
Question: How do you calculate my income?
Answer: Qualifications are based on 12-24 average monthly deposits either through business or personal bank statements.
Question: Are interest-only loans available?
Answer: Yes.
Question: Can I use this for an investment property?
Answer: Yes, owner-occupied, second homes, and investment properties allowed.
Question: Do you need my W-2s or tax returns?
Answer: No, we can use either personal or business bank statements.
Question: Will I have a higher interest rate?
Answer: We use competitive rates starting at 3%.
Question: How much down payment do I need?
Answer: As little as 10% down for purchase with no mortgage insurance.
Question: do I have to be 100% the owner of the business?
Answer: No.
Call me today for more information
Frequently Asked Questions About Self Employed Home Loans
Can self-employed borrowers qualify for a home loan?
Yes. Self-employed borrowers can qualify for a home loan through specialized mortgage programs that use alternative income documentation. Instead of relying solely on tax returns, lenders may review bank statements or other financial documents to determine eligibility.
Do I need tax returns to qualify for a self-employed mortgage?
Not always. Many self-employed home loan programs allow borrowers to qualify using 12 or 24 months of personal or business bank statements instead of traditional tax returns.
What credit score is needed for a stated income home loan?
Credit score requirements vary by lender and loan program, but many stated income mortgage options are available for borrowers with credit scores starting around 600. Higher credit scores may help borrowers qualify for better interest rates and loan terms.
How is income verified for self-employed borrowers?
Income is often verified using bank statement deposits rather than taxable income reported on tax returns. Lenders evaluate consistent deposits over a specified period to determine qualifying income.
Can I use a stated income loan to buy or refinance a home?
Yes. Stated income loans can often be used for both purchasing a home and refinancing an existing mortgage, depending on the loan program and borrower qualifications.
Are stated income loans available for investment properties?
Yes. Many stated income loan programs can be used to finance investment properties, second homes, and primary residences, provided the borrower meets the lender’s requirements.
How much of a down payment is required for a self-employed home loan?
Down payment requirements depend on factors such as the loan program, property type, credit score, and overall financial profile. Qualified borrowers may be able to purchase a home with as little as 10% down.
Can I qualify if I’ve had a bankruptcy, foreclosure, or short sale?
Possibly. Some self-employed mortgage programs are designed for borrowers with previous credit events. Eligibility depends on factors such as the time since the event, current credit history, and overall financial qualifications.