Creative Mortgage Solutions for Self-Employed Borrowers

Creative Mortgage Solutions for Self-Employed Borrowers

Fairway Independent Mortgage Corporation
Fairway Independent Mortgage Corporation
Published on January 15, 2024
Creative Mortgage Solutions for Self-Employed Borrowers

Creative Mortgage Solutions for Self-Employed Borrowers

The rise of the gig economy and entrepreneurship means more people are self-employed than ever before. But how does this shift impact the mortgage process? Let's explore the options available for the self-employed.

Verify my mortgage eligibility (Oct 6th, 2024)

Traditional vs. Non-Traditional Income:

Understanding the Difference: Unlike traditional employees, self-employed individuals might have fluctuating incomes, making it challenging to present a steady earning pattern.

The Lender’s Perspective: Lenders prioritize stability. For them, consistent income equals lower risk. Hence, unconventional earning patterns may raise eyebrows.

Solutions for the Self-Employed:

Alternative Documentation: Instead of traditional W-2 forms, lenders might accept bank statements, tax returns, or profit-and-loss statements as proof of income.

Verify my mortgage eligibility (Oct 6th, 2024)

Larger Down Payments: Offering a bigger down payment can sometimes offset the perceived risk of lending to a self-employed individual.

Co-signers: If possible, having a co-signer with a traditional income source can boost the confidence of lenders.

Shop Around: Not all lenders view self-employment the same way. Some might have more experience and flexibility in dealing with non-traditional borrowers.

Being self-employed doesn’t mean homeownership is out of reach. With a little creativity and persistence, tailored mortgage solutions can pave the way to your dream home.

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*The information contained herein is distributed for educational purposes only. Contact your Fairway loan officer for more information regarding your specific situation.

All content has been written and provided by leadpops.com

Fairway Independent Mortgage Corporation
Fairway Independent Mortgage Corporation Winston-Salem
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