SELF EMPLOYED BORROWERS

Many business owners and self employed borrowers face special challenges when seeking financing for a home. There are a variety of programs available to self employed borrowers and Five Stars Mortgage is proud to offer them all to our clients. Working with business owners and entrepreneurs is very exciting. We take pride in being able to offer aggressive loan programs to our self employed borrowers. Please read on as we dig deeper into the choices and special circumstances of the self employed and their loans...

The Self Employed Loan

Self employed borrowers are no more or less risky then salaried or W-2'd workers. The main challenge for the self employed is documenting work history and income. This is the biggest difference between a conventional borrower and a self employed borrower. How can self employed borrowers document their income and work history?

• Last 2 years personal and business tax returns
• Proof of 2 years self employed by showing either a business license or with a CPA letter
• Personal and or Business Bank statements
• Year to date profit and loss report
• Credit references if needed for business

On a fully documented loan such as this the lender will consider the "net" income of the individual after deductions. This can be a challenge for some small business owners. Please note - any new business owners (1099) must have a min 2 year history before applying. 

Other Options

Self employed borrowers have other options for getting their financing if they cannot use a full documentation loan. These include:

( As of 2011 we are no longer offering the options listed below - please refer to the hard money page) 

• Stated Income
• No Doc
• 24 Months bank statements (alternative full document loan)

MORTGAGE PROGRAMS