Mortgage Loans for the Self Employed

Self-employment can be a rewarding and enjoyable lifestyle choice. It allows people the freedom to do the work they choose when and how they want to do so. But despite all of its benefits there are drawbacks as well. One of the most prominent issues which often arises is the difficulty in being approved for loans, especially mortgages.

The reason lenders tend to find these individuals risky is simple. It is easy to declare your projected income, but with your own business it requires immense motivation and dedication to see it through. Self-employed individuals often have less savings than a corporation as well, so when the economy experiences a decline or a catastrophe occurs, the corporate employee faces less risk of becoming job-less.

Getting a mortgage is possible, but it relies on the applicant to be prepared and organized when they apply. Here are a few tips for increasing your own opportunity.

Credit and Debt

Having a good credit score is important for anyone who wants to buy property, regardless of how they are employed. However, for the self-employed a better than average score may be needed. Debt is important as well. A new business will often have higher debt than an established one, and is in turn also a higher risk. Plus, with anyone, higher debt means more bills to pay and the likelihood of problems should an unexpected event occur.

Savings and Assets

You must have something to show for all of your hard work. Enough should be available in savings to cover fees and upfront money required for obtaining a mortgage, but there also needs to be enough for maintaining the property as well.

Taxes and Accounting

You need clear profit and loss statement and tax records. Detailed business reports which match with bank records will prove your bookkeeping is accurate and professional.


More and more companies are beginning to provide funding to the self-employed. These lending institutions require the same basic standards as they do from employed buyers. If you have been established in your business with two years of records to prove it, the opportunity does exist to find the loan you need. You can find out more by visiting