How I can help Self-employed Individuals
This service is designed for self-employed borrowers who are unable to provide traditional income verification, but have a proven 2-year history of managing their credit and finances responsibly.
Eligible borrowers typically own a small size business for a minimum of two years, which can be confirmed via a third-party arms length document. In addition, the borrower is required to declare their annual income, which should be reasonable based on the industry, length of operation and type of business.
The requirements for this type of financial service are as follows:
• Maximum 2 units where 1 unit must be owner occupied
• New construction or existing properties
• New construction covered by a lender approved New Home Warranty Program
• Readily marketable residential dwellings, located in markets with demonstrated ongoing re-sale demand
• Estimated remaining economic life of the property should be a minimum of 25 years
The income reported by the borrower must be reasonable based on the industry, length of operation and type of business
• Strong credit and credit score with minimum 2 trade lines with at least two (2) years history (for recommended bureau score requirements see the premium matrix below)
• Refinance transactions: Minimum credit bureau score of 650 is recommended
• No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months
• No reported defaults on residential mortgages for the past 7 years
• No previous bankruptcy
• Minimum 5% down payment from the borrowers own savings. The remainder may be gifted from an immediate family member. Borrowed down payments are not permitted.
• Borrowers with commission income are ineligible
• Lender to ensure borrower(s) have no tax arrears
• All applicants used to qualify must occupy the property (If two unit property, one unit must be owner occupied)
• Spousal guarantors acceptable