Self-Employed Mortgage

Self-Employed Mortgage


Welcome to our comprehensive guide on self-employed mortgages. If you are self-employed and looking to buy a home or refinance your existing mortgage, you’ve come to the right place. We understand that being self-employed comes with its own unique set of challenges, and we are here to help you navigate the mortgage process with confidence.

Understanding Self-Employed Mortgages

Self-employed mortgages are specifically designed for individuals who work for themselves and do not have a traditional employment income. As a self-employed individual, you may have fluctuating income, irregular cash flow, or difficulty providing the same level of documentation as a salaried employee. However, this does not mean that you cannot qualify for a mortgage.

When applying for a self-employed mortgage, lenders will typically consider your income, credit history, and other factors to assess your eligibility. While the process may be slightly different compared to traditional mortgages, there are options available to help self-employed individuals achieve their homeownership goals.

Qualifying for a Self-Employed Mortgage

Qualifying for a self-employed mortgage requires careful preparation and documentation. Here are some key factors that lenders may consider:

  • Income: Lenders will assess your income stability and consistency. They may consider your net income after deducting business expenses or look at your average income over a specific period.
  • Tax Returns: Providing your tax returns for the past two or three years can help demonstrate your income history and stability.
  • Bank Statements: Lenders may request your personal and business bank statements to verify your income and cash flow.
  • Business Financial Statements: If you have a registered business, providing financial statements such as profit and loss statements, balance sheets, and business tax returns can strengthen your application.
  • Credit History: A good credit history is important for any mortgage application. Lenders will review your credit score and payment history to assess your creditworthiness.

Types of Self-Employed Mortgages

There are several types of self-employed mortgages available to meet the unique needs of self-employed individuals:

  1. Stated Income Mortgages: These mortgages allow you to state your income without providing extensive documentation. However, they may have higher interest rates or require a larger down payment.
  2. Bank Statement Mortgages: With bank statement mortgages, your income is assessed based on your bank statements rather than traditional income documentation. This can be beneficial for those with irregular income or who have difficulty providing tax returns.
  3. Asset-Based Mortgages: Asset-based mortgages consider your overall net worth, including investments, properties, and other assets, in addition to your income. This can be helpful if you have significant assets but lower reported income.

Benefits of Working with a Mortgage Professional

When navigating the self-employed mortgage process, working with a knowledgeable mortgage professional can be invaluable. Here are some benefits of seeking professional assistance:

  • Expertise: Mortgage professionals specialize in helping self-employed individuals secure mortgages. They have in-depth knowledge of the industry and can guide you through the process.
  • Access to Lenders: Mortgage professionals have access to a wide range of lenders, including those who specialize in self-employed mortgages. They can help you find the best options tailored to your specific needs.
  • Documentation Guidance: A mortgage professional can assist you in gathering the necessary documentation and ensure it is presented in the most favorable way to lenders.
  • Negotiation: Mortgage professionals can negotiate on your behalf to secure competitive interest rates and favorable terms.


Obtaining a mortgage as a self-employed individual may require additional effort, but it is certainly possible. By understanding the unique requirements and working with a mortgage professional, you can increase your chances of securing the right mortgage for your needs. Remember, each lender may have different criteria, so it’s important to explore your options and find the best fit for your specific situation. Take the first step towards homeownership as a self-employed individual by reaching out to a trusted mortgage professional today.