What is the self employed mortgage program?
Bank statement mortgage program
The self employed mortgage program, also known as the bank statement mortgage program, is a set of mortgage requirements designed by alternative lenders, for business owners. Under the self employed mortgage program, self employed home buyers and home owners can qualify using their business bank statements as income, rather than tax documents.
Self Employed Mortgage Programs and Rates Explained
Self Employed Mortgage For Home Buyers
For purchasing a home, a minimum of 20% down payment is required under the self employed mortgage program.
Self Employed Mortgage Refinance
The maximum loan to value (LTV) for self employed refinancing is 80%.
Self Employed Mortgage Rates
To determine the interest rate for a self employed mortgage, lenders factor various things such as credit score, and debt servicing ratios (gdsr and tdsr). The interest rate may increase if there are credit delinquencies, and if the GDS / TDS ratios are high.
For a home equity line of credit, the interest rate starts from prime + 1%, and the rate is determined on the same basis as above.