Self-Employed Homebuyer
Self-Employed Homebuyer
Being self-employed often means greater flexibility and financial independence. It can also add complexity to the mortgage process. At Resource Financial, our team of mortgage specialists make it easy for self-employed homebuyers to turn their homeownership dreams into reality.
Documents Needed
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Two Years of Tax Returns
Including all schedules to verify your income
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Profit and Loss Statements
To help demonstrate the health of your business
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Bank Statements
Both personal and business accounts to show cash flow and reserves
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Business Licenses or Certifications
To confirm your business status
Getting Loan Approval
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Credit Worthiness
Your credit score plays a critical role in the mortgage process. The higher your score the better your changes od loan approval along with lower interest rates. Our loans for self-employed homebuyers require a credit score of (000) or higher.
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Debt-to-Income Ratio (DTI)
We calculate your DTI to ensure you can manage your monthly payments. For self-employed borrowers the acceptable range of DTI is 43% or lower.
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Down Payment and Reserves
Having savings in reserve equal to a few months or monthly payments may increase your changes of loan approval.
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Income Stability
As a self-employed borrower, your income may vary, and we understand that. Large fluctuations may raise questions, so be prepared to explain and provide supporting evidence if needed.
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Alternative Loan Options
We understand traditional income documentation may be a challenge for self-employed borrowers. That’s why we offer bank statement loan options that use your bank deposits rather than tax returns to verify your income.
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Pre-Approval
We recommend getting pre-approved for your home loan before you begin shopping. This will let you know how much home you can afford and will show sellers you are a serious buyer.
I’m Ready to Take the Next Steps to Home Ownership
