This comparison of top lenders caters to people who don’t fit the traditional employee structure.
Home Loans for Self-Employed Borrowers
It can be confusing to prove earnings when applying for a mortgage as a sole proprietor, since you don’t have a pay stub or set monthly income. Salaried employees need to show 6 to 12 months of pay slips and up to a couple of years of W2 forms—which report the employee’s annual wages and the amount of taxes withheld from their paycheck.
What are The Best Mortgage Lenders for Self-Employed Borrowers?
|Lender||Loan Types||Best for||Visit Site|
|Fixed, ARM, Jumbo, FHA, VA, USDA, Refinance||Comparing many mortgage rate quotes||View Rates|
|Fixed, ARM, Jumbo, FHA, VA, USDA, Refinance||All-digital platform||View Rates|
|FHA, VA, conventional||Homeowners looking to refinance and take out equity||View Rates|
|FHA, VA, 203k loans||Families looking to buy or refinance homes||View Rates|
|Home refinance, new purchase||Hassle-free comparisons||View Rates|
Self-Employed Mortgage Requirements
Whether or not you choose to incorporate, stay solo, or run a partnership, lenders will probably ask you for most of the following, some of which you’ll need your accountant’s help to prepare:
- At least 2 years of personal tax returns, including form W2 if you pay yourself a salary.
- A list of debts and assets.
- A profit and loss statement for the current year.
- If you’ve incorporated: at least 2 years of business tax returns, a signed letter from your accountant attesting to your business’s stability, and written consent from other owners to grant access to the business’s financial records.
The Top 5 Lenders
Best for: Self-employed borrowers with good credit
- View quotes from multiple lenders
- Service is free to use and takes seconds to get results
- Free online credit score check
LendingTree is an online marketplace for mortgages and other types of loans, connecting users almost instantly to the lowest rates from its network of lenders. To view quotes from multiple lenders for your preferred type of mortgage, simply fill out LendingTree’s short online form and the results will show up on your screen in seconds. Minimum credit scores, minimum down payments, and other requirements specific for self-employed borrowers vary by lender.
Minimum Down Payment: 0%
Minimum Credit Score: 500
Standout Feature: Delivers some of lowest rates on market
Best for: Borrowers who want Home Loan Experts to help you put documents together
- Online and mobile lender
- Quick application process
- Offers same suite of products as owner Quicken Loans
Rocket Mortgage is Quicken Loans’ online and mobile lender, allowing borrowers to access and apply for all the usual Quicken Loans products and rates without leaving the comfort of their own home (or home office). For a conventional loan with 20% down payment, borrowers will usually need to have a good credit score of 700 or higher, although loans may be available for scores of as low as 620. The lowest Rocket can offer for FHA loans is a 3.5% down payment with minimum 580 credit score.
Minimum Credit Score: 580
Standout Feature: Complete the entire process online or on your smartphone.
Best for: Homeowners looking to refinance and take out equity
- Connections with hundreds of lenders
- Detailed questionnaire for the best possible match
FHA Rate Guide isn’t a direct lender. Instead of laying out all the features and types of mortgages on offer, FHA Rate Guide asks you about your mortgage needs, then emails you eligible loans that fit your circumstances. FHA Rate Guide doesn’t help you to complete your loan application or negotiate better mortgage rates; it simply sends you information about potential mortgage products.
Minimum Down Payment: None specified
Minimum Credit Score: None specified
Standout Feature: Borrow extra cash against the property when you take a mortgage or refinancing loan
Best for: Families looking to buy or refinance homes
- Lots of educational info available online
- Strong financial institution
As a pillar of the financial industry, Paramount Bank has been providing banking services for half a century. Today, the company is also an HUD-approved lender with Fannie Mae/Freddie Mac agency products aplenty. Paramount Bank is also delegated FHA/VA, FHA 203K, and USDA-approved. In short, this is a company that you can trust.
Paramount Bank offers a simple process: apply, upload documents, review loan details, and close. It’s simple, it’s fast, and it’s understandable.
Minimum Down Payment: 0% for VA loans, 3%-20% for conventional
Minimum Credit Score: Not published
Standout Feature: Smooth and hassle-free home loan process
Best for: Hassle-free comparisons
- Compare rates and fees across lenders
- Digital application process automates document collection
- Complete the entire origination process through Credible
Credible.com’s mortgage marketplace builds on the success of the company's marketplaces for student loans, student loan refinancing, and personal loans, which have facilitated more than $1.6 billion in loans. Credible’s integrations with lenders and credit bureaus make it a snap to compare actual, prequalified rates across multiple lenders without impacting your credit score, and you don’t have to worry that your personal information will be shared with any lender other than the one you choose to work with. Once you see an option you like, Credible’s streamlined process and licensed loan officers provide a seamless experience all the way to closing.
Minimum Down Payment: 20% for lowest rate
Minimum Credit Score: 620 for most loans
Standout Feature: Provides you with actual prequalified rates
Regardless of your financial and personal circumstances, it’s always a good idea to shop around between a few lenders to see which one can offer you the lowest rates and most ideal down payments and terms.
Having said that, all self-employed home buyers should also take into consideration how much documentation the lender needs to see and how quickly the lender can process the mortgage application. This is very important because mortgage applications can take as little as a couple of weeks or as long as a couple of months. The longer your application takes, the more likely that other things can go wrong with your home purchase or that your purchase falls through altogether.
Therefore, when shopping around between the best lenders, make sure to ask upfront about which documents they’ll need. Don’t be afraid to ask them for specifics: if one lender requires fewer forms and documents relating to your income and taxes than another lender, this might well be the tie-breaker for deciding which of the 2 lenders is best for you.