The vast majority of lenders utilize underwriting guidelines that make it increasing difficult for self-employed borrowers to secure mortgage loans. A common requirement to use a two-year average of a borrower’s income to determine eligibility. In a situation where the income has declined from the previous year, the lender will use the declining income regardless of the reasoning behind the decline.
Home Point Financial has a portfolio mortgage product that will utilize tax returns for just one year to determine a borrower’s income. The program will require evidence that the borrower has been self-employed for a minimum of two years and goes up to a maximum loan amount of $900,000. This program is available for a purchase as well as refinancing. Please contact us for more information.
