Types of Self-Employed Mortgages

There are three major types of mortgages for self-employed individuals. Traditional mortgages are the first, providing the experience that all borrowers have learned from. These loans require your information, providing you the option of a fixed or variable rate on your mortgage. Traditional mortgages’ issues come with verifying your income. Being self-employed, it is hard to quantify or explain your income situation.

The second type commonly offered is a low-documentation mortgage. Low-documentation mortgages usually refinance homes at up to 90% of their appraised value. These loans are much less restrictive than the average mortgage, requiring only a clean credit history (free of bankruptcies, foreclosures, and usually late debt payments), and proof of self-employment (at least 3 years’ worth). Mortgage Zilla Group will provide you with the best low-documentation mortgages, as we promise reliability and trustworthiness.

The last type is a no income mortgage. Up to 80% of your home equity can be provided for a new purchase or refinance. This is the least restrictive mortgage, requiring only a 20% down payment or 20% equity collateral, on average.

Getting the Best Chances

For any mortgage, the higher your credit score and equity, the more likely you will be approved for a self-employed mortgage. Many loaners may reject applications more often, as they are less regulated, although a high credit score and high home equity give you a greater chance of being accepted.

A self-employed worker with clean credit history will usually receive the lowest interest rates available. As such, an established or long-existing credit history can greatly impact your future interest rates, although a long history is not required for a mortgage. It is also important to consider how much equity you have within your properties, as well as how much capital you can put into a down payment. The higher for either of these factors, the more likely you will be accepted with the best rates.

Finding the Best Mortgages

As with all mortgages, different lenders provide different quality loans. One of the easiest and most efficient ways to receive a mortgage as a self-employed worker is to connect with the best lender for you. Canada is home to dozens of large lending companies, each with its own unique understanding and rates for self-employed mortgages. While one lender might handle the most troublesome paperwork for these loans, another might refuse you altogether.

Mortgage Zilla Group takes care of many of those issues, connecting you with the best lender for you. Our experts observe the mortgage market, focused on getting you the best interest rates we can. Mortgage Zilla Group knows the best mortgage providers for self-employed workers, and we’ll get you with a lender who can not only provide you a mortgage but will provide you a mortgage with the best interest rates available.