There is a misconception about being self-employed and it being difficult to qualify for your own home. Being self-employed offers a lot of freedom; being your own boss, creating your own hours, and doing what you love and enjoy as a means of employment. It does not mean that you cannot qualify for a home loan. In fact, there are many loan programs available that BlueGrey Mortgage can help you get qualified for.
One such loan program is specifically designed to aid entrepreneurs, contractors, and other self-employed individuals—the Bank Statement Loan Program. Bank Statement Loans are conventional loans with fixed-rate interests and often provided with a 30-year term. Like conventional loans, they can be paid off early without any penalties and require a down payment of 20%.
Self-employed individuals may also qualify for other loan programs if they meet the requirements of the specific loan program as well as the below requirements.
Self-Employment Loan Requirements
- A FICO of 680 or better; exceptions may be made depending on the loan program or additional down payment.
- A debt-to-income ratio of less than 50%.
- A loan to value ratio of 80%.
Contact us to discuss loan options if you are self-employed or a contracted employee—going home isn’t out of your reach and we will help you get there.