Find us on Google+ Google+

Wednesday, April 24th, 2024

Mortgage Options for Self Employed

May 15, 2009 by  
Filed under Featured Content

For self-employed borrowers, the general criteria that must be satisfied include:

2-years self-employed tenure is recommended, however some lenders will consider borrowers with less.
Proof of self-employment tenure must be on file. For example, business license, T1 General etc.
The “stated” income should be reasonable based on the type and size of the business.
Strong credit history and credit score will determine the loan amount that may be borrowed.  For example, you could potentially puchase up to 95% loan-to-value (LTV), or do an equity take-out to a maximum of $200,000.
No reported defaults on residential mortgages for the past 7 years. No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months. No previous bankruptcy
No gifted/borrowed down payment allowed.

For more information, look at Genworth and CMHC’s guidelines.

Enhanced by Zemanta

Comments are closed.