It is common for self-employed borrowers to be denied income-based loans. The solution? Asset-based programs!
Although income-based programs are common, that doesn’t mean it’s the right fit for everyone. It is very common for those who are self-employed to write off large portions of business expenses, affecting income. In turn, some may find it difficult to qualify for these programs. These are the borrowers that make ideal candidates for asset-based programs. Assets can include, more obviously, property and funds, but also includes 401ks, IRAs, Annuities, and more. Asset-based loan programs solve the aged issue of the self-employed being denied a loan based on income even though they are ideal candidates. Credit scores can also present issues for self-employed borrowers, which is why our largest and most utilized lender lowered their credit score minimum for self-employed borrowers from 780 to 700. This is great news for all those self-employed borrowers who were denied a mortgage loan based on their credit. Due to the new minimum, we have an increasing amount of self-employed borrowers coming to us for a mortgage loan with more approvals than ever before.