Catering To The Mortgage Needs Of Entrepreneurs And Self-Employed Borrowers

Catering to the Mortgage Needs of Entrepreneurs and Self-Employed Borrowers – Self-employed individuals and entrepreneurs have unique and specific needs when it comes to securing a mortgage. Often, traditional lenders bypass this demographic in favor of more predictable borrowers.

Some lenders may harbor concerns about the ability of self-employed individuals to maintain a consistent income stream, while others shy away from the added paperwork that accompanies granting loans to this important group of borrowers. Fortunately, Reliance Financial has stepped in to offer tailored mortgage options for self-employed individuals. Read on to discover more.

Reliance Financial’s Mortgage Solutions for Entrepreneurs and Self-Employed Borrowers

Reliance Financial is committed to closing the mortgage gap and making homeownership more accessible to self-employed individuals. It specializes in Non-Qualified Mortgage (Non-QM) Loans for clients who don’t meet typical lending criteria. Non-QM loans offer more flexibility concerning credit history, income verification, and debt-to-income ratios. This alternative is invaluable for self-employed individuals who cannot meet standard mortgage requirements.

Here are the mortgage options available to self-employed borrowers:

1. Bank Statement-Based Loans

Bank Statement Loans are among the standout mortgage solutions offered by Reliance Financial. Unlike traditional mortgages that demand tax returns and W-2 forms as proof of income, bank statement loans consider both personal and business bank statements as valid proof of income. This is a game-changer for self-employed individuals whose earnings fluctuate or have significant deductions on their tax returns.

2. 1099 Income Documentation Loans

Reliance Financial’s 1099 income documentation loans empower self-employed borrowers who receive 1099 income to use that income to qualify for a mortgage.  We are able to use 90% of the 1099 income to use as income to qualify self-employed borrowers on a home loan. This mortgage loan also requires substantially less paperwork compared to standard mortgages as no income tax returns are needed. Rather than focusing solely on extensive documentation, these loans place greater emphasis on the applicant’s self-employment income.

3. Asset-Depletion Loans

Reliance Financial extends asset-based loans to self-employed individuals with substantial assets but irregular income streams. These loans use income from assets like investments, retirement accounts, real estate holdings, and savings accounts to qualify for a home loan. This is particularly attractive for individuals with a high net worth but an inconsistent income.

4. Debt Service Coverage Ratio (DSCR) Loans

For borrowers looking to invest in residential real estate, our popular DSCR loans allow you to qualify for a mortgage using market rents on the subject property.  We offer loan amounts up to $2.5 million and you can purchase an unlimited number of rental properties. 

Qualifying for a Reliance Financial Mortgage

While Reliance Financial offers more flexibility than traditional lenders, specific criteria must be met to qualify for our self-employed mortgage options:

• Profitable Business

  Reliance Financial evaluates the stability and viability of your business. A consistent track record of self-employment can be advantageous.

• Strong Credit

  When applying for a mortgage with Reliance Financial, a solid credit score is crucial. A higher credit score demonstrates your ability to manage debt responsibly.

• Adequate Assets

  For asset-based loans, having substantial assets that can serve as collateral is vital. These assets provide protection to the lender in the event of default.

• Business and Personal Bank Statements

  To be eligible for a bank statement loan, you must submit bank statements demonstrating a steady income and cash flow.

• Proof of Income

  While Reliance Financial’s mortgage options offer flexibility, proof of income is still required, even if it doesn’t take the form of a traditional tax return.

Benefits of Choosing Reliance Financial for Self-Employed Mortgages

Tailored Solutions

Reliance Financial recognizes the financial challenges that self-employed individuals face. Our mortgage options are specifically designed to accommodate variable cash flow, unpredictable revenues, and the diverse income streams of self-employed individuals.

Streamlined Application Process

For self-employed clients, Reliance Financial has simplified the mortgage application process, reducing the extensive documentation often associated with conventional mortgage applications. This can save you time and alleviate the stress that accompanies traditional mortgage applications.

Competitive Interest Rates

Despite their flexibility, Reliance Financial’s mortgage options offer competitive interest rates. This means self-employed borrowers can access loans that are both accommodating and affordable.

Interest-Only Payment Option

Many of our mortgage loan options for self-employed come with an interest-only payment feature. This allows you to keep your payments as low as possible to deal with uncertainty in income generation.

Personalized Guidance

Reliance Financial’s experienced mortgage professionals understand the unique challenges faced by self-employed individuals. Throughout the mortgage application process, we provide personalized guidance to help you make informed choices that align with your specific financial situation.

Diverse Loan Products

Reliance Financial does not offer a one-size-fits-all solution. We provide a wide array of mortgage solutions, allowing you to choose the option that best suits your unique financial needs.

In Conclusion

Reliance Financial emerges as a beacon of hope for entrepreneurs and self-employed individuals looking to realize their dream of homeownership. Their unique mortgage options, including bank statement loans, 1099 income loans, DSCR, and asset depletion offer self-employed borrowers unparalleled flexibility. Tailor these mortgage solutions to address the specific financial challenges that entrepreneurs, freelancers, and small business owners face.

Self-employed individuals who choose Reliance Financial gain access to attractive interest rates, streamlined application processes, and personalized guidance from a team of mortgage experts. While securing a mortgage as a self-employed mortgage can be challenging. Reliance Financial’s commitment to empowering this specific demographic of borrowers is consistent. With their support, homeownership becomes more attainable for a broader range of individuals, regardless of their employment status.

FAQs About Mortgage Options for Self-Employed Individuals

Q1: How can you consider self-employment income for mortgage applicants?

Lenders often calculate income based on the average of your taxable income over the past two years. And they may be more cautious if your income has been inconsistent.

Q2: What is a bank statement loan?

At Reliance Financial, we offer bank statement loans, allowing self-employed applicants to qualify using their bank statements instead of traditional tax filings. This is particularly beneficial for individuals with fluctuating incomes.

Q3: Can self-employed people get a mortgage?

Yes, self-employed individuals can secure a mortgage. However, the process may differ from traditional employees, and lenders often require additional evidence to verify income.