In any type of borrowing situation, a higher credit score will make you a more attractive candidate to get the loan in the first place and to qualify for lower interest rates if you're approved. If you know you can make the payments, you can do some of the following things to improve your chances of getting a loan. There are mortgage products available for you as well as steps you can take to make yourself a more attractive loan candidate overall.
Many of our experienced loan originators are experts in assisting self-employed borrowers. If you are self-employed, NJ Lenders Corp. The key is partnering with a licensed and experience loan originator who is familiar with assisting self-employed borrowers.įor example, if the mortgage loan applicant has high credit scores, good income, large down payment, and substantial in reserves, it is very likely that Freddie Mac will only require one year tax returns for self-employed borrowers. However, Freddie Mac’s Automated Underwriting System will allow self-employed borrowers one year’s tax returns per LP FINDINGS if the mortgage loan applicant is a strong mortgage loan applicant. Fannie Mae’s Automated Underwriting System will not issue an approve/eligible per DU FINDINGS unless self-employed borrowers have two years tax returns. In general, mortgage lending guidelines require that self-employed borrowers provide two years tax returns in order for them to be eligible to qualify for a residential mortgage loan. Don't let anyone tell you that you'll never get a mortgage if you're self-employed, or that you shouldn't quit your day job to pursue your dream of running your own business until you've already purchased a home. Self employed borrowers normally have a tougher time qualifying for a residential mortgage loan than W-2 wage earners. Some lenders may be concerned that you won't earn a steady enough income to make your monthly payments, and others may simply not want to deal with the additional paperwork that can be involved in providing a mortgage to a self-employed person.