If you are self-employed and are wondering if you can get a mortgage to buy a home, then today is your lucky day because there are some mortgage lenders that approve applications from self-employed people.
Although you may need to be a lot more transparent with your income to get the mortgage, it’s still worth it, and very much possible.
More so, being self-employed makes the mortgage application process a bit difficult. Because lenders regularly request proof of income and it could be hard if you don’t have a paycheck or W2.
Additionally, the rules of getting a house mortgage have become tighter for the self employed. So you would want to do everything possible to ensure you get approved for a loan.
We have seen this problem and decided to provide solutions by compiling a list of the best mortgage lenders for the self-employed, as well as their requirements, and factors you should consider before applying to the financial institution.
Continue reading to discover them but first, here’s a table of contents to easily navigate through the article.
What Are Mortgage Lenders Looking For?
When applying for a loan, it is important you play your own part first. A mortgage lender wouldn’t just consider you because you want to be a homeowner.
The average American wants to own a home. So, what places your application forward against millions of other Americans especially as a self-employed person is what you should focus on doing.
Here are few things to get ready, as mortgage lenders always lookout for these things.
What You Should Look Out For
Basically, getting approved for a loan is a 50-50 situation, as it depends on your lender just as much as it depends on you.
So, here are a few things to consider when choosing a mortgage lender to apply to.
Having established the factors that must be considered before you apply to a mortgage lender, here are some tips to help you get a home mortgage.
Tips on How To Get a Mortgage
Below are some useful tips to help you get a loan from mortgage lenders as a self employed.
#1. Fill the right paperwork
Gather the right documents to demonstrate to your loan officer and real estate agent. Ensure there are no mistakes or wrong documents attached. It makes you appear responsible.
#2. Improve your credit score
The higher your credit score, the better chances you have at getting a mortgage loan from your lender. Your credit score is what determines how reliable you pay back your debt.
Also, check your DTI( debt-to-income) ratio which is simply the amount of debt relative to your income.
That is, divide the minimum monthly payments of your debt by your gross income per month. Aim to have a DTI ratio of 50% or less. You can also learn how to improve your credit score to 800.
#3. Give a large down payment
When paying for your home, it’s important you offer a large down payment. That way lenders will see you as someone with high prospects of paying back your loan.
#4. Have a solid self-employment history
Your mortgage lender will want to see if you have been in business consistently for at least 2 years. Since you are self-employed, they’d want to see if you’ve had a steady income from whatever it is you do.
#5. Look attractive to your mortgage lender
You don’t want to apply for a house mortgage looking like you won’t be able to pay back the mortgage loan. So, endeavor to appear as responsible as you are. Put your best foot forward.
Now, who are the best mortgage lenders for self employed? You’ll find out shortly.
Who Are The Best Mortgage Lenders for Self employed?
These mortgage lenders are known to approve loans for the self-employed as long as they meet the requirements.
Additionally, they offer FHA loans alongside other types of loan packages that are independent of each firm.
Hence, here are the best mortgage lenders for self-employed people.
#1. Guaranteed Rate
FHA Minimum Credit Score: 620
Begining my list of the best mortgage lenders for self-employed is the Guaranteed Rate company. The firm is a residential mortgage company with headquarters in Chicago, Illinois.
With its 20 years of experience, Guaranteed rate company has a long record of providing satisfactory services to its customers. In fact, as of 2019, the company had a funded volume of $37 billion.
Additionally, Guaranteed Rate has digitized the mortgage process making it easy for you to apply for your loan in minutes.
#2. First National Bank
FHA Minimum Credit Score: 700
First National Bank(FNBA) is a family-owned community bank with headquarters in East Lansing.
The firm is known for providing a wide range of services from commercial to mortgage loans.
with its over 60 years of experience, FNBAs mortgage loan services are suitable for Self-Employed borrowers, ITIN borrowers, Previous Credit Event borrowers, and everyone in between.
Find out more by clicking the button below.
#3. Luxury Mortgage
FHA Minimum Credit Score: 580
Luxury Mortgage is a residential mortgage banking firm that makes it easy for homebuyers to get a mortgage for their homes.
The firm offers traditional loan terms, as well as more flexible home payment plans with their 40-year loan program.
Additionally, Luxury Mortgage offers a wide variety of mortgage products that include FHA, JUMBO, and Super JUMBO mortgages.
The firm is has been offering residential mortgage services for over 24 years, making it easy for self-employed people to receive a loan.
Luxury Mortgage makes the list as one of the best mortgage lenders for the self-employed, and you can get to know more by clicking the button.
#4. HomeLight Home Loans (Eave)
FHA Minimum Credit Score: 620
Eave, Inc. dba HomeLight Home Loans (“HLHL”) is a digital mortgage lender that has transformed the mortgage lending industry into a quick-service industry.
One that gives the self-employed the same mortgage opportunity as those with the traditional brick and mortar job.
As long as you meet its requirement of providing your employment history that proves that you are able to pay for the loan you are requesting, Eave simplifies the process.
Get to know more about this mortgage lender by clicking the button below.
#5. Freedom Mortgage
FHA Minimum Credit Score: 540
Another one of the best mortgage lenders for self-employed is Freedom Mortgage. Established in 1990, the company is a full-service company that provides mortgage loans through retail, wholesale, and correspondent channels.
Freedom Mortgage is present in all 50 states and is a good option for those who will like to relocate in the future.
Get to know more about Freedom Mortgage by clicking the button here.
#6. Quicken Loans
FHA Minimum Credit Score: 580
Quicken loans is a mortgage lending company with headquarters in Michigan. The firm offers different types of loan services and is also known as the largest overall retail lender in the U.S.
Additionally, Quicken Loans offers its customers online tools to help them monitor their mortgage application process. Also, these online tools allow you to customize your application process even till setting your own closing time.
The company is present in all 50 states and has closed over $400 billion of mortgage volume between 2013-2017.
Find out more by clicking the button below.
#7. Flagstar Bank
FHA Minimum Credit Score: 600
Flagstar Bank is a subsidiary of Flagstar Boncorp, a bank holding company in Michigan. It offers a variety of banking and lending products from FHA loans, to government-backed loans, specialty loans, and lots more.
Whether you are a first time home buyer or not, Flagstar bank’s mortgage options are tailored to suit your needs.
Get to know more by clicking the button below.
#8. Citadel Servicing
FHA Minimum Credit Score: 500
Citadel Servicing is a mortgage lender that offers Non-QM Wholesale and Correspondent lending programs.
With over 40 years of experience, this company does not require traditional income employment proof. Rather, it lets you apply for loans using different income products like asset depletion, bank statements, verification of employment, to mention a few.
Additionally, it has a wide variety of mortgage options that include fixed and adjustable-rate mortgages (ARMs) for residential properties on both an owner-occupied and non-owner occupied basis.
Find out more by clicking the button below.
#9. Better Mortgage Corporation
FHA Minimum Credit Score: 620
Better Mortgage Corporation intends to make the entire mortgage process easy and much more simplified. The company believes in transparency, and that homeownership should not be so difficult.
In addition, Better Mortgage uses technology to help you understand the various mortgage products it offers and to determine which one best suits you. It also allows you to readily complete your application process online with little or no hassle.
Get to know more about this stress-free mortgage lender for self-employed by clicking the button below.
#10. PennyMac Loan Services
FHA Minimum Credit Score: 620
PennyMac Loan Services is one of the top 3 lenders in the USA. Founded in 2008, the company has provided every customer with the right loan for their need.
PennyMac Loan Services offers a wide variety of loan programs. From Conventional loans to VA, FHA, Investment property loans, and USDA loans. Whatever your need may be all these loan options are tailored to suit them.
Find out what PennyMAc has in store for you by clicking the button below.
#11. Angel Oak Mortgages
Minimum Credit Score: 660
Angel Oak Mortgage is a wholesale mortgage lender that offers a non-QM and specialized mortgage solutions for brokers and those in need of a mortgage.
The firm offers only 30 year fixed rates with no ARMs( adjustable rate mortgages). Additionally, it has a wide variety of loan options for self-employed that include bank statement mortgage, 1099 income loan, Investor cash flow, Platinum jumbo mortgage, among others.
Also, Angel Oak Mortgage offers an automated tool “QuickQual” that makes the application process easier for loan officers to determine borrowers’ eligibility.
Find out what other packages Angel Oak Mortgage has to offer for self-employed people by clicking the button below.
#12. Carrington Mortgage
Minimum Credit Score: 500
Carrington Mortgage Services, a subsidiary of Carrington Holding is a fully-integrated mortgage company with lending and mortgage servicing operations.
The company offers a wide variety of mortgage types that include ARMs, conventional, FHA, home equity loans and HELOCs, jumbo, refinance, USDA, and VA.
These loan options put together to provide full support to borrowers and investors.
To learn more about the Carrington Mortgage service, click the button below.
#13. New American Funding
Minimum Credit Score: 500
New American funding is a mortgage lender that offers a variety of home loan options nationwide including low and no-downpayment loans.
Some of its mortgage types include ARM, cash-out refinance, conventional, FHA, jumbo, USDA, to mention a few.
Once your loan has been approved, you can manage payments, view your balance and other loan information through your online account.
Click the button below to find out more.
#14. Athas Capital Group
Minimum Credit Score: 500
Athas capital group is a direct lending platform that offers non QM lending programs. With over 50 years of experience, Athas capital group offers financial solutions to borrowers deserving of it.
Since its inception, Athas has funded over $3 billion of new loan originations.
Find out more by clicking the button below.
#15. U.S. Bank
Minimum Credit Score: 700
Rounding up my list of the best mortgage lender for the self-employed is the US Bank. The bank provides financial products and services that aim to make banking safe, easy, and convenient.
Included in the range of financial services is Mortgage. US Bank offers a wide range of mortgage types such as FHA, Investment property loans, New construction and lot loans, ARMs, Jumbo loans, VA, Conventional fixed-rate loans, to name a few.
Get to know more about the US bank’s mortgage process for self-employed people by clicking the button here.
Conclusion
Below is a summary of the best mortgage lenders for the self-employed as well as their credit score.
| Mortgage Lender | Minimum Credit Score |
| Guaranteed Rate | 620 |
| First National Bank | 700 |
| Luxury Mortgage | 580 |
| Homelight home loans | 620 |
| Freedom Mortgage | 540 |
| Quicken Loans | 580 |
| Flagstar Bank | 600 |
| Citadel Servicing | 500 |
| Better Mortgage Corporation | 620 |
| PennyMac Loan Services | 620 |
| Angel Oak Mortgages | 660 |
| Carrington Mortgage | 500 |
| New American Funding | 500 |
| Athas Capital Group | 500 |
| U.S. Bank | 700 |
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