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It can be more challenging to get a mortgage if you're self-employed because lenders want to see proof of a stable income stream. Though challenging, getting a mortgage as a self-employed person is possible. If you have excellent credit and can prove that you have a steady income, you will find that your mortgage options are very similar to those of your typically employed family and friends.

When applying for a mortgage, self-employed people do not face any additional challenges. Your background, liabilities, deposits, and earnings will be evaluated alongside other borrowers. Verifying your financial stability is potentially a huge challenge. More documentation of your income may be needed than if you were working for a corporation. However, if you are self-employed and can show that your income is consistent and stable, you should not have trouble getting a mortgage or refinancing an existing one.



-Reliability of financial resources.
-Your place of business/self-employment and its specialty.
-Potential earnings from your company or your independent profession.
-The capacity of your company or line of work to continue bringing in a satisfactory income for the foreseeable future.




Be on Track
Lenders are more likely to approve your loan application if you can show that you have experience successfully managing the risks and benefits of being self-employed. In order to increase your chances of getting a loan, you must have been self-employed for at least two years. A longer track record of payment best demonstrates revenue stability.


Positive Credit History
Lenders check your credit report to get an idea of whether or not you will be able to repay your loans. The amount of money you make is not considered when evaluating your credit history. A higher credit score is more important than a lower debt-to-income ratio when applying for a mortgage.


When borrowers have more home equity, they are less likely to sell the property and start over during tough financial times. If the borrower puts down a sizable down payment, the bank will see them as a safer bet.


Settle Consumer Liabilities
The easier it is to make your mortgage payments on time each month, the fewer monthly loan payments you have when you apply for a mortgage. Repaying high-interest debts like credit cards and auto loans can free up cash flow, making it possible to apply for a larger credit line.



Provide Supporting Documents

If you are applying for a loan, it will help if you are ready and able to document all of your income, including tax returns, bank statements, and any other relevant financial data from the past few years.


Finding Your Lender


There are several factors to consider before applying for a self-employed loan or any kind of home mortgage. If you're on the fence about applying for a home loan, having a real estate agent who knows what they're doing on your side could be very helpful. We have a team of experts ready to provide first-rate services that will help you zero in on the best opportunities available.

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Comments (3)

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em:

Thank you for sharing the information. Buyers in your area will benefit from your expertise. Wishing you continued success.  Have a wonderful day and sell a house.  bill

Jun 29, 2022 10:52 AM
Paddy Deighan MBA JD PhD - Vail, CO
Paddy Deighan J.D. Ph.D

everyone wants to be self employed and they seldom look at the downsides before venturing down that path....but there is always a way!!

Jun 29, 2022 10:14 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I always find it challenging to write a Profit & Loss statement as a realtor.  If that were explained with an example, that would help.  I'm sure there are others in this situation.  But I love being a "one girl band!"

Jun 30, 2022 08:37 AM