Compass Mortgage - Getting a Loan When You're Self-Employed

Getting a Loan When You’re Self-Employed

Being self-employed brings its own challenges when you’re applying for a mortgage through a bank or any other traditional lenders. Most mortgage companies underwrite their loans based on standard guidelines that have been established by Fannie Mae, the FHA, or the VA. However, we have programs through non-traditional sources for borrowers who do not fit standard guidelines, such as the self-employed.

Self-employed borrowers are often considered riskier than other types of mortgage loan applicants. Consequently, they frequently receive closer scrutiny than do salaried borrowers. For example:

Self employed borrowers must demonstrate two or more years of self employment, while salaried borrowers can often get mortgages while they are transitioning to a new job.
The electronic underwriting systems used for Fannie Mae and Freddie Mac programs require higher credit scores for self employed borrowers.
The reserve requirements for self employed borrowers are more strictly interpreted.
Self employed borrowers are qualified on their average income over the last two to three years, whereas salaried borrowers are qualified on their current income (which is usually higher than an average).

So often, the financial records of the self-employed borrower don’t reflect either his true business success nor his ability to repay the loan. We have number of underwriting techniques and loan programs designed for self employed borrowers:

We add back depreciation, depletion, and use of your home to your income, to help you qualify.
We can help you with a Stated Income Program (which doesn’t require tax returns to prove your income).

We at Compass Mortgage are experts at assessing your situation. We’ll help you to document your application with the appropriate amount of information needed to get you a competitive interest rate.

If you’re self-employed and would like to qualify for a mortgage, call Charley Farley at (603) 471-9300 or e-mail charley.farley@weloannh.com.

Compass Mortgage Inc. - 172 Route 101 - Bedford, NH 03110-5416
Office Phone: (603) 471-9300 Fax: (603) 472-8811 Toll Free Phone: (877) 211-5300

Homebuying Made Easy®

Licensed by the New Hampshire Banking Department.
Equal Housing Lender | Member, New Hampshire Association of Realtors® | Member, Mortgage Bankers and Brokers Association of New Hampshire | Member, National Association of Mortgage Brokers (NAMB) | Federal Housing Commissioner Approved Lending Institution (HUD) | Agent, US Department of Veterans Affairs Home Loan Guaranty Services

"Homebuying Made Easy" and "NH First-Time Homebuyers Club" are registered trademarks of