Self Employed Mortgages

Looking for a mortgage but are struggling to prove their income? Need to find a company that will make a stated income mortgage for you? Mortgage, stated income, is a great way to get a mortgage if you can not prove what you do with tax forms or paycheck stubs.

Here's how it works. 

First, make sure you are in the right situation to use an established program income for your mortgage. If you work for a paycheck and have been working in the same industry for over 2 years, then do not need a stated income program. This program is for independent workers, Tipped employees and independent contractors.

The stated income program works. Quite simply, you write down how much you make in a month or annually and sign it. Which will act as your income documents. The mortgage company will not ask for any evidence and did not verify any income wise.

A pair of the things you need to know about mortgage stated income. You will be considered a bit more of a risk than someone who can demonstrate their total income. This will make the rate to be slightly higher and its LTV to be a little lower. We also want you to have credit good enough or not eligible.

Now you know about mortgage stated income program and if you are self-employed individual, a tipped employee or an independent contractor may use this type of mortgage program to get the mortgage you need.

Because you have to provide all the documentation and information yourself, this is why this type of mortgage is called self cert self employed mortgages. 

You, along with the information you provide will be what is used to certify your legitimacy for your loan and terms. 

This makes it a little more difficult to find approval for a mortgage and will often create added drawbacks due to the risk involved for the lender.

Two significant drawbacks involved in self employed mortgages are increased interest rates and higher deposits that may be required.

 Some of the documentation that is most important to provide in low interest self cert self employed mortgages are your bank statements for the last six months, proof of all incomes such as invoices, pensions, rental incomes and anything else that proves you receive money.

You will also want to provide the last two years tax returns, proof of assets such as saving account balances, stocks or bonds. 

Your business license and other documentation may be asked for and any documentation you can find that shows you in good standing will help negotiate your terms in your best interest.

We have discussed a few of the drawbacks of the self employed mortgages; however, there are a few benefits as well.  A self certification mortgage for a first time home buyer is often the best way to be able to get a foothold on property ownership.

This type of Self cert self employed mortgages may also be helpful for the individual looking to remortgage or secure a different home.   Self employed mortgages are just one type of self certification loans and each circumstance will determine the wide range of interest rates, payback terms, fees and down payment requirements.

It is well worth exploring the market and mortgage industry to find a broker who will be able to work with you and understand your specific needs.  Be prepared with your documentation and shop for the best deals possible.  They are out there even for the most unique situation.