Self Employed Mortgage Guidelines On Traditional And NON-QM Loans

This BLOG On Self Employed Mortgage Guidelines On Traditional And NON-QM Loans Was PUBLISHED On March 19th, 2020

Self Employed Mortgage Guidelines
Gustan Cho Associates

Self Employed Mortgage Guidelines:

If you’re self-employed and reading this blog, you have more than likely ran into trouble while attempting to get a mortgage.

  • Self Employed Mortgage Guidelines on non-QM loans does not require borrowers income tax returns
  • Gustan Cho Associates launched non-QM loans for self employed borrowers

There are two types of self employed mortgage guidelines:

  • Self Employed Mortgage Guidelines On Traditional Government And Conventional Loans
  • Self Employed Mortgage Guidelines On NON-QM Loans

In this article, we will cover and discuss Non-QM Mortgage Guidelines.

Traditional Self Employed Mortgage Guidelines On Government And Conforming Loans

With traditional self employed mortgage guidelines on government and conventional loans, income tax returns are required. FHA, VA, USDA, and conventional loans are considered traditional loans.

  • Many loan officers will simply put their hands up when they get self-employed borrowers
  • Most loan officers are not familiar with Self Employed Mortgage Guidelines and analysis income tax returns
  • Not only because it is more work for the loan officer, but many loan officers do not know how to complete self-employed income calculators correctly
  • This is the reason we send all self-employed borrowers to our underwriter for a complete income calculation
  • As part of the loan process, the underwriter needs to sign off on the income
  • So why not do this upfront?
  • The short answer is most loan companies are so large these days that they simply become a number like you are at the deli
  • That is not the case with us at Gustan Cho Associates
  • Our business model allows us to help all clients on a personal level

Our process is streamlined to help those with one-off situations get qualified for the mortgage they deserve.

Qualifying For Self Employed Mortgages

How to qualify for self-employed mortgages

What are my options as a self-employed mortgage borrower?

  • Ever since the real estate and the economic collapse of 2008, the government of the United States of America has stepped in overseeing mortgage regulations
  • And a lot of these regulations put in place by HUD, Fannie Mae, and Freddie Mac do step in the way of self-employed borrowers obtaining mortgage financing
  • Mortgage companies must use income that is reported to the IRS on Federal Tax Returns for qualification
  • Freddie Mac and Fannie Mae have set the standards for what can be added back in and what is taken out as far as deductions on your 1040 tax returns are concerned
  • Reach out to the self-employed experts at Gustan Cho Associates to go over your income qualifications based on your federal tax returns

If you decide to proceed, the income will be confirmed by an underwriter, so there is no guessing game during the process.

Excluding Unreimbursed Business Expenses For Higher Income

Are there ways to exclude business expenses?

  • Depending on how taxpayers file income tax returns and how they complete accounting for their business, they may be able to exclude liabilities from credit report from overall debt to income ratio
  • To elaborate, if borrowers have credit cards that are used for business purposes, those may be excluded
  • Borrowers must provide proof of 12 months bank statements showing they paid these expenses out of their business bank account
  • It must be from the business to be excluded from debt to income ratio
  • This is a great way to increased buying power when getting pre-approved for a mortgage

If planning on buying a home in the next few years, it might be a good idea to open a business bank account.

Alternative Financing For Self Employed Borrowers With NON-QM Loans

Which means alternative financing for self-employed borrowers with loans not related to QM

If for some reason borrowers still cannot get qualified using income tax returns, we have a full lineup of NON-QM mortgage loans that helped many self-employed borrowers purchase a home.

  • Qualified income will be calculated off borrowers bank statement and not tax returns
  • We do not require income tax returns
  • There are a few caveats to how this program works

Please call Mike Gracz on 630-659-7644 or text for faster response to ask specific questions

See the blog below for further details:


Gustan Cho Associates are committed to getting out clients qualified.

  • If for some reason you do not qualify today, we will put you on a plan to qualify as soon as possible
  • Take a look at some of our reviews
  • We work with many families for up to a year before they qualify
  • Some even longer
  • We are committed to treating you and your family like valued clients and not just an application number

We are available 7 days a week and we’ll do our best to make this process as smooth and easy as possible.

Start Pre-Approval Mortgage Process With A Lender With No Overlays On Self Employed Mortgage Guidelines

There are no loan limits on non-qm loans for self employed borrowers.

  • There is no mortgage insurance required. Down payment required is 5% to 20%
  • The amount of down payment is dependent upon borrowers credit scores
  • Mortgage Rates are competitive with traditional loan programs
  • Mortgage rates depends on down payment and borrowers credit scores
  • Gustan Cho Associates also offers 95% LTV NON-QM Jumbo Mortgages With No Mortgage Insurance
  • Maximum loan limit is $3 million
  • No mortgage insurance required

Contact Michael Gracz at 630-659-7644 or text for faster response. Or email Michael at Mike and his national team of licensed and support personnel is available 7 days a week, evenings, weekends, and holidays.

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