The Income Solutions Program Helps Qualify Self-Employed Borrowers
Being a sole proprietor of a business, a contract worker, freelancer, or otherwise self-employed can be a struggle. You are charged with being solely responsible to insure that the flow of work and income is maintained, taxes are paid, and customers and suppliers are kept happy. It can be a major chore just staying afloat, and the same goes for many other borrowers who are paid on an irregular basis.
To add another layer to just how hard it can be to survive, when it comes time to leveraging your success by purchasing a home, you will undoubtedly meet with many more obstacles to obtain financing than most people in your income bracket.
One great solution to this problem is the Options Financial Income Solutions Program. Under the program, qualified self-employed borrowers can get the mortgage loan they need, simply by supplying supporting bank statement documentation.
Just because your income may not be as steady and consistent as someone working a 9 to 5, doesn’t mean you’re not ready to quality for a mortgage.
With Income Solutions, we don’t just look at things like your taxes or credit history and then make a decision based on these factors. Instead, we look at the borrower from a holistic perspective in order to determine eligibility.
Helping Out Self-Employed Borrowers
For self-employed borrowers, the qualification process is simple and easy. Fill out the form to the left and a representative from Options Financial will discuss the specifics of qualifying, but in general, borrowers:
- Must have a minimum FICO credit score
- Must have a debt to income ratio below a specific threshold
- Must be looking at purchasing a property with a loan to value ratio below a specific threshold
- Will only have access to loans below a specific amount
In order to qualify, a prospective self-employed borrower simply needs to provide one complete year’s worth of bank statements. Options Financial will use the bank statements to calculate the sole proprietor’s income at 50% of the 12-month average of business deposits only—no other income source will or can be taken into account.
For many borrowers, the reduced amount of documentation will come as a welcome benefit to the program. Qualified self-employed borrowers will have to demonstrate that they have been self-employed for at least two years.
For other income-challenged borrowers, including those paid on an inconsistent basis, the qualifications are similar. These borrowers must have at least a 660 FICO score, and their debt to income ratio cannot be higher than forty-five percent. The maximum loan to value ratio for the property they are hoping to purchase cannot exceed eighty percent, and the loan amount cannot exceed one million dollars.
Furthermore, income-challenged borrowers must have maximum reserves of six months. However, these borrowers may be eligible to obtain a loan for a non-warrantable condo**. This program is also open to foreign nationals, and those who may currently be looking to secure financing for investment properties**.
Non-warrantable condos (a condominium property in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, financing is considered by most banks to be more “risky”) are another feature of the Income Solutions program. So even with properties that tend to be more difficult to finance, this program could provide the answer when it comes to finding the right mortgage.
Derogatory Credit Eligibility
Those with derogatory credit, a FICO score below 660, or a debt to income ratio in excess of forty-five percent may also qualify for this program, though some restrictions will apply.
If the derogatory credit record was for a loan secured for their primary residence, then it must be two years (in the case of bankruptcy or short sale), or three years (in the case foreclosure, since the derogatory credit record was established) for them to qualify.
Income Solutions Can Get You Into a Home
If you are self-employed, receive your income in irregular payments, or simply have had trouble with credit in the past, the Income Solutions Program from Options Financial may be a great way for you to secure a mortgage for your next home. You owe it to yourself and your loved ones to check into this great program, and to see what it has to offer your unique situation.