Getting a Home Loan When You’re Self-Employed

When you’re self-employed, getting a home loan is going to be a little more involved than if you were a salaried employee. There’s more paperwork, tighter qualifying rules, and you’ll need to show a stable income.

The good news is it’s getting easier for you and 14 million other Americans who are self-employed to get approved.

Mark Kimmerling, Senior Loan Officer with MSI  works with many self-employed clients to help them get qualified for home loans. He shared with us his tips on how to make the process easier for those who are their own boss…
“The largest hurdle that I come across with self-employed borrowers is business expenses used to reduce taxable income.  In turn, having a hard time qualifying based on the ATR (the ability to repay) guideline.
Investors are aware of this situation and have come up with some non-prime programs to help borrowers in these types of situations. The rates and term options on these loans are not as aggressive as the prime loans offer.
Not all self-employed borrowers will need to use the previously mentioned non-prime lending options.  Each self-employed client is unique and needs to be handled differently based on their own situation. Below is a list of some suggestions of some things that can be done to help self-employed borrowers  increase their loan options.
1)      Pay down as much debt as possible prior to applying for a mortgage
2)      Save enough money for a sizable down payment to help on risk, lower monthly    payment and eliminate mortgage insurance
3)      Keep your personal and business bank accounts separate
4)      Be aware of your credit scores.  Higher credit scores will help with the rate and loan options
5)      Maintain clean and accurate business records”
Click here to talk with Mark about your home loan questions or to get more information!


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