If you own your own business, you understand the unique rewards and challenges that come with the territory. At Luxury Mortgage, we do too. That’s why we’re pleased to offer a selection of home loan options that are well-suited for business owners and self-employed borrowers.
Why Traditional Mortgages May Not Be The Best Option
A traditional, i.e. conventional mortgage may be a popular choice for most home buyers, but business owners may discover their financial picture doesn’t ideally match up with conventional loan guidelines. For instance, most conventional mortgages will require borrowers to provide documentation showing consistent income and/or employment. For business owners, especially small-business owners, this can be a challenge as business income can fluctuate month-to-month and year-to-year.
Traditional mortgages may likely also require a higher credit score in order to qualify for the most competitive rates. This can be another hurdle for some business owners. Likewise, borrowers who are business owners or do not have traditional W-2 documented income may have more challenges qualifying for higher loan amounts. When borrowing an amount that exceeds the local loan limits, a jumbo mortgage may be required. These loans typically require a high credit score as well as income documentation.
Alternative Mortgage Options for Business Owners/Self-Employed Borrowers
If you’re a business owner, you may find one of these loans will work well for your scenario:
Bank Statement Qualifier
With this loan option, borrowers can use bank statements from deposit accounts to qualify. Traditional W-2 income documentation is not required, and bank statements can be from either personal or business accounts. Click the button below to learn more about this program.
Asset Qualifier Mortgage
The Asset Qualifier Mortgage is another flexible financing option that does not require income or employment documentation. With this loan program, borrowers can use assets to qualify for the mortgage. This can be an excellent choice for borrowers who have substantial assets but who may lack consistent, documentable income. Click the button below for more information.