Mortgages for Self Employed
Mortgage lending rules for self employed individuals vary dramatically from lender to lender. Our
expertise will guide you through this to ensure you receive the best options.
Running your own business has numerous benefits as well as responsibilities. You have the ability to
earn a much higher income while taking advantage of tax sheltering strategies to maximize the money
you keep in your pocket.
Traditionally, when it came to qualifying for a mortgage, these benefits created challenges as tier one
lenders would only look at your declared or taxable income in determining how much you could borrow.
This often meant dealing with a tier two lender, paying higher interest rates and requiring much higher
Fortunately, common sense in the lending community has increased and there are now much better
options for those individuals who are self employed and can reasonably demonstrate their true income.
This is not to be confused with the former American NINJA ( No Income, No Job, No Assets ) style
lending that helped precipitate the radical decline in the US housing market. Lenders and mortgage
insurers are looking at your overall profile and nature of your business to determine if the income that
you state makes sense. Good credit, net worth, and low debt load will overcome the fact that your tax
return may not reflect your true income.
With the programs available today, you may be able to purchase a home with as little as 10% cash down
and qualify for the best available rates. These programs have helped level the playing field between the
employed and the self employed. This a real bonus especially considering the increase in the number of
self employed people over the last decade.