When it comes to residential home mortgages, it’s important to consider all aspects of a borrower’s financial situation. This includes their employment history, particularly if they have been self-employed for less than two years but at least 12 full months.
To be considered for a mortgage, the borrower needs to have been working in a similar position before becoming self-employed. For example, if they were an attorney working for a law firm, a plumber working for someone else, or an electrician working for someone else, this would be taken into account.
In addition, the borrower’s previous income needs to be at a similar level for consideration. This is because lenders want to ensure that the borrower has a stable income and can make their mortgage payments on time.
Overall, while being self-employed for less than two years can be a challenge when it comes to getting a mortgage, it’s not impossible. By considering the borrower’s employment history and previous income, lenders can make an informed decision about whether or not to approve their application.
If you have any further questions or concerns about getting a mortgage as a self-employed borrower, it’s always a good idea to speak with a qualified mortgage professional who can provide you with personalized advice and guidance.
Connect with one of our loan consultants to learn more.