Self-Employed/Stated Income Loans

There is a misconception about being self-employed and the difficulty 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 you cannot qualify for a home loan. In fact, there are many loan programs available that BlueGrey Mortgage can help you get qualified for.

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Self-Employment Loan Programs

Bank Statement Loans

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%.

Stated Income Loans

Stated income loans have a maximum loan-to-value ratio of 70%, so they do require a larger down payment than other home loans. However, BlueGrey Mortgage can help self-employed individuals qualify quickly and easily if they meet the below requirements.

State Income Loan Requirements

A credit score of 700 or better

Have a high-earning revenue

Liquidated assets (e.g., cash savings)

Stated income loans are a type of “no-doc” home loans—requiring little to no paperwork to get the borrower qualified and the application started. Self-employed borrowers will need a good credit score and be able to show they are financially secure and can make a sizeable down payment of at least 30%. While income verification is not necessary for a stated income loan (e.g., w-2s or paystubs), bank statements are requested to show the borrower has a significant number of reserves.

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.