Frequently asked questions about self-employed mortgages
Will I need a larger down payment if I’m self-employed?
If you can’t verify your income, but you have a good credit history, you can apply for a stated income mortgage. Stated income mortgages have higher interest rates, however, and require a bigger down payment (at least 10%).
Is it better to work with a broker for a self-employed mortgage?
In most cases, yes. Mortgage brokers have broad market knowledge and access to a variety of lenders offering a wide range of terms—including many that specialize in mortgages for the self-employed.
Should I consider a private mortgage if I’m self-employed?
It can often be easier to get approved for a private mortgage when you’re self-employed because private lenders emphasize property value over credit score or verifiable income. They’re also more likely to offer stated income mortgage loans. Most charge considerably higher interest rates, however, along with additional lender fees.