approvU For Self-Employed Mortgages

Self-employed mortgages are specialty mortgages designed for small business owners who are unable to prove their income with standard income and tax documents, i.e. Notice of Assessment, Audited Financial Statements, and Business Tax Filings.

This mortgage type is also called a Stated Income Mortgage.

It is easier to get a mortgage with self-employment income than you might have made to believe – no need to go from one broker to the next. approvU has brought these specialty mortgage lenders in one place to make it easy for you to search, apply, and close your mortgage in the comfort of your home.

The documentation requirement might differ from a fully-employed income source, but the experience is the same. approvU has leveled the field to allow you to enjoy the experience of getting a mortgage without the pain of your self-employed income status.

You’ll need to provide more income documents than a full-time employee. Also, the income requirements may vary from lender to lender. At a minimum, you will need to provide the following documents:

• Business Incorporation or registration documents to prove the ownership of the business
• Business License to prove your authorization to operate the business
• At least six months of business bank statements
• At least two invoices to confirm your standard business expenses
• At least two invoices to confirm your standard business income sources
• Proof of no HST or GST payment owing

Bad credit does not prohibit you from getting a mortgage as a self-employed borrower. It may make the situation more complex, but not impossible.

“Bad credit” for a mortgage is defined as credit scores of 620 and less or derogatory credit records like a past bankruptcy or consumer proposal, active collections, judgements, late payments, etc.

Self-employed and bad credit are two separate mortgage categories, which adds to the complexities of getting a mortgage. That could add to the difficulty of getting a mortgage and the right mortgage at the best rate.

Using a platform like approvU to ensure you reach the widest extent of the market for the best lenders with the right mortgage solutions for your unique situation is essential. Your designated approvU Mortgage Expert will work with you every step in the process, with the guidance and support you need to get your mortgage funded in time.

Most lenders will prefer you to have been operating the business for at least two years at the time of your application. The established history of your business operation helps lenders better predict its future income.

Some lenders will accept less than two years of business operation with a solid history of industry experience. If you have been working in the industry as an employee and decide to open your business as the owner, a few lenders will consider your application for a mortgage.

This all depends on each specific lender. No universal guideline or rule restricts how much you can borrow with a self-employed income. Each lender could set limits based on the risk and exposure they are willing to accept. Lenders on approvU could lend you as much as $10 million, as long as you qualify. Get started to see how much you can get.

You need a minimum of 20% of the house value as your down payment to qualify for a self-employed mortgage. Each lender may have specific down payment requirements based on your situation and mortgage needs. For example, a lender may require you to put down at least 25% of the house value if you are buying a rental property, or a 35% minimum down payment if the property is located in a rural community.

You want to ensure that you get the best mortgage deal with the least restrictive requirement, which is why it is essential to use approvU to shop the market to see what you could possibly qualify for and what your minimum down payment would be.

You could, but that is outside of our offerings. In this case, connect with Private Mortgage lenders or Brokers dealing with Private Mortgage Lenders. A Reverse Mortgage is also an option if you are considering getting a mortgage with no income.

The lenders on approvU require proof of income to validate that you can repay the mortgage loan. There are also regulatory guidelines on the minimum income you need to qualify for the amount you want to borrow for financing your home ownership.

Use the approvU Mortgage Affordability Calculator to check how much you can borrow with your current income.

Yes, getting a mortgage with a self-employed income source can be difficult, but it’s not impossible. The complexities stem from the way you choose to prove your income.

It’s difficult for lenders to accurately estimate income from self-employed sources because of how they are recorded and reported. Also, the incomes fluctuate highly month to month. These factors all make this source of income less secure for supporting regular mortgage loan payments.

Lenders want to ensure that their loan will be paid as agreed, but the fluctuating nature of the income makes it less reliable than income from a fully employed source.

Another reason why getting a self-employed mortgage seems complicated is that some lenders aren’t prepared to deal with the complexities of validating this income type.

That’s why you need to use a platform like approvU to directly connect with specialty self-employed mortgages most suitable for your unique needs and situations.

Our Mortgage Experts have strong ties with our lenders, so you’ll be in good hands if you choose to use approvU for your mortgage.