Since 2017, there are some new and flexible mortgage programs available to Mortgage professionals that are making it easier to qualify self-employed borrowers for mortgage loans.
Here are my top tips for increasing your odds of getting approved for a mortgage loan:
- Have an up to date “Profit & Loss” statement
- Be prepared to explain any fluctuating Income
- I can even use mortgage programs that use bank statements only to verify positive cash flow and income, rather than looking solely at your tax returns
- If you have been self-employed for at least 5 years we could use only one year of tax return.
- Be very mindful of your particular Debt-to-income ratio. Why?
- This provides a great story of the amount of money you take in versus the amount of money you spend to cover your recurring debts. The goal is to have a low debt-to-income ratio.
- Good credit.
- We will pull credit from the three credit bureaus (Equifax, TransUnion and Experian) and use the middle credit score.
- Stable or steady income
My team of lenders are experts at helping self-employed borrowers reduce their risk and helping them obtaining a mortgage loan.
Want more information, contact us directly at 305-815-2003