If you are self-employed and looking to purchase a home, obtaining a mortgage can be a daunting task. Unlike traditional employees, self-employed individuals face unique challenges when it comes to securing a mortgage. However, with the right guidance and support, it is possible to find the ideal mortgage solution that suits your unique needs.

As a licensed mortgage broker with over 35 years of experience in the financial industry and extensive knowledge of the mortgage market, I Jeff Cody, have helped countless self-employed individuals realize their dream of homeownership. In this blog, I will highlight some of the challenges self-employed individuals face when applying for a mortgage and the solutions available to overcome them.

Challenges Faced by Self-Employed Individuals

The first challenge self-employed individuals face when applying for a mortgage is proving their income. Traditional employees can provide pay stubs and T4 slips as proof of income, but for self-employed individuals, it's not that straightforward. Self-employed individuals often have fluctuating income, and their tax returns may not accurately reflect their current income.

Another challenge is that self-employed individuals may not have a lengthy credit history. Lenders prefer to see a history of credit utilization and timely payments, which can be difficult for those who are just starting their business.

Solutions for Self-Employed Individuals

Fortunately, there are solutions available for self-employed individuals to overcome these challenges and secure a mortgage. Here are some of the options:

1. Stated Income Programs: Some lenders offer stated income programs, which allow self-employed individuals to state their income without having to provide traditional income verification documents. However, these programs may come with higher interest rates and stricter qualification requirements available with as little as a 10% down payment.

2. Bank Statements Programs: Bank statement programs allow self-employed individuals to provide bank statements as proof of income. This option may be more suitable for those with fluctuating income.

3. Non-Traditional Credit Programs: Some lenders offer non-traditional credit programs, which consider alternative credit sources such as utility bills, rent payments, and cell phone bills. This option can be beneficial for those who do not have a lengthy credit history.

4. Alternative Lenders
There are many Alternative Lenders with programs for business-for-self clients with 20% down payments. Rates and fees depend on the amount of down payment, credit, property location, type of business and proof of income available.

Working with Jeff Cody
As a licensed mortgage broker, I Jeff Cody, work with a wide range of lenders and have access to a variety of mortgage products. I can help self-employed individuals navigate the mortgage application process and find the ideal mortgage solution that suits their unique needs.

In addition to helping with the mortgage application process, I also provide guidance on improving credit scores, managing debt, and developing a savings plan for a down payment.

 

Self-employed individuals face unique challenges when it comes to securing a mortgage, but there are solutions available to overcome these challenges. As a licensed mortgage broker with extensive experience in the financial industry, Jeff is committed to helping self-employed individuals find the ideal mortgage solution that suits their unique needs.

Contact me today to learn more about how I can assist you in achieving your dream of homeownership. To learn more about the services, please click here or call at (902) 315-2547.