Self-Employed Borrowers

There are 2 basic ways we can treat self-employed income: Stated Income or Provable Income.
Stated income programs are for self-employed borrowers who are unable to provide traditional income verification. Provable Income programs are designed for self-employed borrowers that can provide income verification but may also require some additional consideration due to permitted tax deductions which can reflect a lower income amount.

Stated Income Program

• Your stated income amount must be reasonable for your profession, length of operation and industry
• Must be able to prove a minimum of 2 years as business for self via article of incorporation, business license, etc. Additional documents may also be required.
• Require proof of no tax arrears
• Up to 90% loan to value. The more down payment you can provide, the better!
• Strong credit required

Provable Income Program

• If you can show 4 consecutive years of positive earnings, then we can use the most recent year’s earning to qualify the file OR we can take the average of your last 2 years’ Line 150 incomes. We can also gross this up an additional 15%. If the 15% gross-up does not qualify the deal, then we can include add backs like reasonable motor vehicle expenses, capital cost allowances, and business use of home
• Notices of Assessments are required, plus additional documents.
• Require proof of no tax arrears
• Up to 95% loan to value
• Strong credit required

Please call us today at 250-851-8888 and we can schedule a free consultation to discuss in further detail.