Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
| You can expect to be classified as a self-employed borrower if you own 25% or more of a single business, or if you work as an independent contractor or service provider. A lender will also consider you to be self-employed if you work for a company that pays you as a gig worker instead of an employee, and provides you with a 1099 for your services rather than a W-2.
How much scrutiny you receive as a self-employed borrower will depend on the lender, the type of business you run and whether you have a co-borrower. Since your income isn’t guaranteed by a traditional employment contract, a lender will ask for extra proof of income to make sure you can still afford a monthly payment. A lender may also consider you to be at higher risk of missing a payment if your earnings tend to vary from week to week. As such, it may ask for additional proof that your business is stable and that you have enough cash flow to handle a lower-earning month. In general, a lender is likely to ask more questions about your business if:
|
| You can expect to be classified as a self-employed borrower if you own 25% or more of a single business, or if you work as an independent contractor or service provider. A lender will also consider you to be self-employed if you work for a company that pays you as a gig worker instead of an employee, and provides you with a 1099 for your services rather than a W-2.
How much scrutiny you receive as a self-employed borrower will depend on the lender, the type of business you run and whether you have a co-borrower. Since your income isn’t guaranteed by a traditional employment contract, a lender will ask for extra proof of income to make sure you can still afford a monthly payment. A lender may also consider you to be at higher risk of missing a payment if your earnings tend to vary from week to week. As such, it may ask for additional proof that your business is stable and that you have enough cash flow to handle a lower-earning month. In general, a lender is likely to ask more questions about your business if:
|
Reach out to me for further detailed information on Self Employed Mortgage loan programs.