Home Loan Options for
Self-Employed Borrowers
You may have heard that you need to work at a regular job for at least two years to qualify for a home loan or refinance. At Castle & Cooke Mortgage, we're putting that myth to bed.
It’s true that we need to document your income to make sure your new home loan isn’t a burden, but it’s not true that you always need a regular paycheck or a W-2.
Mortgage options for homeowners like you
If you are a gig worker, contractor, freelancer, or small business owner, it may be difficult to prove your ability to repay using traditional methods. But that doesn’t mean you have to miss out on all the benefits of homeownership!
Many self-employed borrowers can qualify for conventional mortgages or government-backed home loans, including VA loans for veterans, FHA loans, and USDA loans for properties in rural areas.
Alternative documentation loans
Depending on your situation, your loan officer may recommend an alternative documentation loan. If you’re a good fit, you can leave your tax returns at home and show us your business information instead.
These loans can be a good option for people who have lower credit scores or past bankruptcies. They can also work well for people who have had significant business growth in the last year or who have transitioned from a regular paycheck to self-employed income, even if it hasn't been two full years.
Having documentation organized ahead of time can help the process go smoothly. Your loan officer may ask for:
- Profit & Loss Statements (P&L) from a third-party accountant or tax preparer
- Business tax returns
- Business and personal bank statements
- Any applicable 1099 tax forms
Is this loan program right for you?
Many home loan and refinance programs can work for self-employed individuals if you can meet certain debt and repayment standards. Your loan officer with Castle & Cooke Mortgage can help you find the most suitable options for your situation in a quick conversation.
Call or text today to see if you can get pre-qualified and start shopping with confidence!
