Venturing into a New Industry
If your transition involves stepping into a completely new industry or role, mortgage lenders will understandably be more cautious. In such cases, you lack a proven track record in your new field, which could make lenders hesitant to approve your mortgage application.
Apart from the standard documents required for self-employed applicants, such as business licenses and invoices, lenders will typically ask for 6 to 12 months of bank statements, especially if you opt for a stated income program. A stated income program allows you to declare your income, but lenders won’t simply take your word for it. They’ll meticulously review your bank statements to ensure that your stated income is reasonable.
In this process, lenders calculate your revenue by tallying your deposits and subtract your expenses to confirm that your declared income aligns with your financial activities. This helps ensure the accuracy and validity of your mortgage application.
Special Programs for Newly Self-Employed Individuals
For those who’ve recently become self-employed, mortgage insurers offer specific programs tailored to your needs.
These programs can enable you to qualify for a mortgage with as little as a 5% down payment on a home, making homeownership more accessible during this transitional phase.
If you’re a newly self-employed individual and find yourself in need of a mortgage, don’t be discouraged by the initial hurdles. There are options and programs designed to cater to your specific circumstances. Whether you’re in the same industry or exploring new horizons, there are pathways to homeownership for self-employed professionals.
If you’re seeking guidance on securing a mortgage as a self-employed individual, I’m here to assist you. Feel free to reach out today and let me lend a helping hand as you navigate this exciting phase of your career and homeownership journey.
Contact Huber Mortgage to talk through your options! Contact HERE.
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE