The Door Has Just Been Opened!

Self-employed individuals have always faced certain challenges when it comes to qualifying for home loans. Unlike a W2 employee, self-employed individuals do not have the same documentation such as W2s, to provide proof of income. Lending requirements, for self-employed borrowers, have been in place for many years and have made it challenging for many self-employed to obtain financing to buy or refinance their homes.

While it varies slightly from lender to lender, there are some foundational requirements most lenders follow in qualifying the self-employed. These challenges have frustrated the self-employed for years but recently, a few lenders have innovated home loan programs that satisfy both regulatory oversight and the needs of the self-employed. This opens up home loan opportunities for thousands of home buyers and home owners that are self-employed. 

Dave Ratti, of The Ratti Lending Team at Envoy Mortgage, has home loan programs for the self-employed that require NO TAX RETURNS. He says “The major feature of this program is that the lender verifies income using 12 or 24 months of bank statements (either business or personal bank accounts) to determine qualifying income rather than tax returns. For the first time in years, many self-employed borrowers may now be able to qualify for a home loan.”

Here are just a few of the easy guidelines under the Self-Employed program:

• No Tax Returns
• 10% Down
• Self-Employed at least 2 years
• For Purchasing or Refinancing

Programs like this have not been available to self-employed borrowers, forcing many to rent long-term. These new innovative programs provide significant opportunities for self-employed individuals to qualify to buy a home. It is important to note that self-employed individuals should seek out experienced loan officers and lenders to ensure they have the expertise to properly guide them towards the right program for their unique situation. Likewise, it’s important to note that these programs charge a slightly higher rate than market average, but they are not hard-money loans! 

For more information on self-employed home loan programs contact The Ratti Lending Team @ Envoy Mortgage today!

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