Self-Employed Mortgage Explained
Starting your own company can be an exciting and rewarding venture, but obtaining mortgage financing as a self-employed individual can be challenging. Lenders typically require tax assessments to qualify for a mortgage, which may show a lower net income compared to the gross income. This can make it difficult to qualify for a mortgage. However, there are options available such as providing additional documentation to support your income, such as bank statements or business financials. A mortgage broker can help you navigate these requirements and find a lender that suits your needs.
What Lending Products Are Available For Self-Employed Individuals?
The Low Documentation Mortgage
A high-ratio mortgage is a type of mortgage where you can purchase a new property or refinance your existing home up to 90% of its appraised value. The lender will take into account your credit rating when making their approval decision rather than solely relying on your net income. This can be a helpful option for those who have a strong credit score but may not have a high net income, such as self-employed individuals or those with fluctuating incomes. It’s important to note that high-ratio mortgages often require mortgage default insurance which can increase your monthly mortgage payments. Our mortgage agents can help you determine if a high-ratio mortgage is the right option for your financial situation. Steps to qualify for this Mortgage include:
No Income Mortgage
A No Income Mortgage is a type of mortgage that can help you purchase a new property or refinance your existing home for up to 80% of its appraised value, even if your income and credit are not perfect. With a minimum of 20% down payment or at least 20% equity in your property, we can help you obtain this type of mortgage even with bad debt. Keep in mind that having an established credit history can help you get a lower interest rate and faster approval. Our team of trusted agents is here to help guide you on the path to homeownership. Contact us today to learn more.
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