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Jumbo Loans For Self-Employed Borrowers
What types of jumbo loan options do self-employed borrowers have?
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4 Replies
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The best option for self employed borrowers is the bank statement loan. With good credit, you may find a 10-15% down option.
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Eric, we have no-doc non-QM loans, stated-income non-QM loans, 1099-income only mortgages, no-ratio mortgages, asset-depletion loans, P and L statement only mortgages, and dozens of other non-QM mortgage loan options for no income documentation mortgage loans.
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Eric, we have no-doc non-QM loans, stated-income non-QM loans, 1099-income only mortgages, no-ratio mortgages, asset-depletion loans, P and L statement only mortgages, and dozens of other non-QM mortgage loan options for no income documentation mortgage loans.
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There are plenty of Options for Self-Employed Borrowers with non-QM Jumbo Loans. Here’s how to choose a Non-QM Jumbo loan that fits well.
Traditional Jumbo Loan Options for Self-Employed Borrowers
Standard Documentation Loans:
Requirements: In most cases, self-employed borrowers are expected to submit two years of personal taxes and business tax returns, profit and loss statements, and sometimes a couple of bank statements.
Potential Borrowers: Self-employed people with reliable income and an acceptable credit score.
Asset Based Loans:
Requirements: Though they haven’t been meant only for self-employed borrowers, some lenders say that others maintain savings, stocks, and retirement accounts, which are acceptable loan qualification assets.
Potential Borrowers: People having enough assets but are inconsistent wage earners.
Non-QM Jumbo Loan Options for Self-Employed Borrowers
Bank Statement Loans:
Requirements: Such loans do not require conventional income verification but use bank statements rather for documentation purposes. This is normally required for about 12-24 months.
Potential Borrowers: Self-employed borrowers whose incomes are undocumented for tax purposes due to fluctuating income or self-employment.
Stated Income Loans:
Requirements: These products allow the borrower to state their income without presenting other documents in detail. Lenders may ask for other proof, like bank statements or contracts, to ascertain income.
Potential Borrowers: Self-employed persons whose incomes are intermittent or do not wish to reveal their complete financial profile.
Debt Service Coverage Ratio (DSCR) Loans:
Requirements: Such loans are based on the property’s cash flow instead of the individual borrower. Hence, the focus is on the rental income from the investment property.
Use Case: Great for self-employed borrowers who are buying rental properties.
Requirements: Only the interest is paid by the Borrowers for some time, leading to lower initial payments.
Use Case: Useful to self-employed people who want to control their cash flow during a certain period.
Self-employed borrowers can avail of various options that cater to their needs, including traditional and non-QM jumbo loans. Traditional loans require full documentation, and non-QM loans do not require much income verification other than considering self-employed income streams. An appointment with an expert mortgage can determine the most suitable option based on one’s needs.