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Self-Employed Home Loans

The dream of owning a home is one shared by most people. Usually, getting a home loan is a stepping stone towards making that dream a reality. But, if you are self-employed, that stepping stone may be a little bit further than what you initially thought. Many lenders will need more paperwork in their mortgage application process and other requirements typically available only to those employed by a company.

At Lendstreet, we seek to make your lending experience easy and worry-free. 

So, if you are a freelancer or a business owner looking to start your journey towards homeownership, please get in touch for a quick discovery call to get started with your home loan application.

Lender Requirements

Most banks and lenders are not usually very critical of the exact occupation of the borrower. Instead, what they will try to hone in on is the financial state of the applicant. In many cases being self-employed or owning your own business may mean that your income and revenues are not always consistent at a specific level, month on month. That is something that the lender will consider when looking over your application. Hence, they will ask for more proof that you can make consistent repayments if they grant you a loan. 

This is not something to worry about. At Lendstreet, your mortgage broker will assist you in creating an excellent application that showcases your financial state and its stability in the best possible way. This will also mean that we will help you highlight other attractive features about your income stream, assets, and current financial state to ensure that lenders will see you as a credible and able borrower.

Each lender may have slightly different sets of requirements for those who are self-employed, but in general, they tend to look at the following things: 

If you are a business owner, most lenders will also request that you provide them with information about the financial state of your business or trade. This includes an extra set of documentation that is not normally required by non-self-employed workers. Still, so long as you have been properly running your business, you should easily provide the lender with all of the documents they are requesting. Usually, these include the following:

Your mortgage broker should be able to assist you with determining which lenders has the best loan package for your specific scenario. They will also need to inform you about whether you fit any particular exemption. For example, many lenders will accept applicants who have been self-employed for one year if they were previously employed in a company working in the same field. Especially for people in the trades, having such a trajectory is very common, so these types of exemptions exist. In most cases, if you are self-employed for less than a year, most lenders will be unable to assist you with home loan products.

Low Doc/Alt Doc Self-Employed Home Loans

If you have recently made the transition to self-employment, an alternative option known as low documentation (low doc) loan, also known as alternative documentation (alt doc) loan, is available. This loan type is not available through every lender or bank. Normally, the documents that need to be included for this application are a declaration and proof of income through either:

These are usually used in the following cases:

While this may be an option, it is important to remember that providing low documentation may make your application appear as high risk to the lender. As such, they may offer you a home loan with a higher interest rate and more limitations on other features of the loan.

The path to easier and stress-free home loan applications is here at Lendstreet. Speak to one of our trusted self-employed home loan experts today.

While getting a home loan as a self-employed individual may be a tricky process, it is also a fulfilling one as it will lead to homeownership. If you want to get started on the home loan application process, then a Lendstreet mortgage broker near you will be the perfect guide. We can help you find the best available deals that will work with your circumstances. All you need to do is to accomplish this form, to let us know of your lending requirements. We will be in touch right away to begin exploring your options.

Exciting days ahead await as you embark on the loan processing and home buying process whilst being self-employed. We have been working with others like you and along the way, we have captured some of their most common questions and we have condensed them all in this article. Read our tips for freelancers.

From feeling overwhelmed to knowing you're in control

This is our simple process for equiping you towards your dream of owning a home

Reach out

Let’s get to know you, your situation and your goals!

Find Home Loan

We will search for home loans for you and advice you to choose what best suits you.

Get Pre Approved

This will help you know how much you can afford so you can focus on the right properties.

House Hunt!

Now that you have a budget can start house hunting!

Make An Offer & Buy

And finally, you are here! And we’re proud of you.

Schedule a call to one of our expert mortgage broker

Ask our expert mortgage brokers anything about home loans.

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