Self Employed Mortgage

Mortgage for business owners

  • Minimum 6 months in business
  • NOA's, T1's, Financials NOT Required
  • Sub-Contractor
  • Approved with Bank Statements

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1 - 5 Year Terms

Choose between a shorter or longer term, based on your plans with your home.

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Low Rates

Competitive interest rates from alternative lenders financing business owners.

home equity line of credit

Equity Line of Credit

Qualify for a home equity line of credit with your bank statements, not NOA's

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

Business owners seeking mortgage financing under the self employed mortgage program must provide 3 to 6 months of their business bank statements as income confirmation. Generally, lenders will annualize (take the average of each month and multiply by 12 to determine the annual income) the last 3 to 6 months of deposits.

For purchasing a home, a minimum of 20% down payment is required under the self employed mortgage program.

Self Employed Mortgage Refinance

Similar to the requirements for purchasing under the self employed mortgage program, under the self employed mortgage refinance program 3 to 6 months business bank statements will be required to annualize the business cashflow, to determine the annual income.

The maximum loan to value (LTV) for self employed refinancing is 80%.

Self Employed Mortgage Rates

Self employed mortgage rates for both purchasing and refinancing start from alternative lenders start from 3.59%.

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.

Home Equity Line of Credit (HELOC)

A home equity line of credit or HELOC for self employed borrowers are approved up to 80% loan-to-value (LTV). For a self employed home equity line of credit, the same qualifications and process as refinancing applies, as described above. The interest rate for a self employed home equity line of credit starts from prime + (1%). The interest rate is determined based on the borrower’s credit score and income qualification.

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