Who are the lenders who specialize in self-employed home loans?
- Non-bank lenders: Non-bank lenders are typically smaller financial institutions that don’t offer traditional banking services such as savings accounts and checking accounts. They focus solely on providing loans, including home loans. These lenders are often more flexible than traditional banks and may be more willing to work with self-employed individuals.
- Online lenders: Online lenders are financial institutions that offer loan products entirely online. They often have lower overhead costs than traditional banks, which can result in lower interest rates and fees. Online lenders may also have more lenient requirements than traditional banks, making them a good option for self-employed individuals.
- Mortgage brokers: Mortgage brokers are professionals who work as intermediaries between borrowers and lenders. They can help self-employed individuals find lenders who specialize in self-employed home loans and can assist with the application process. Mortgage brokers can also offer guidance on different loan options and help borrowers compare rates and fees.
What do lenders who specialize in self-employed home loans offer?
- Flexible requirements: Lenders who specialize in self-employed home loans often have more flexible requirements than traditional banks. They understand that self-employed individuals may have varying incomes, and they may be willing to look at alternative forms of income verification, such as bank statements or tax returns.
- Higher loan amounts: Since self-employed individuals often have higher incomes than traditional employees, lenders who specialize in self-employed home loans may be willing to offer higher loan amounts.
- Alternative credit scoring: Some lenders who specialize in self-employed home loans may use alternative methods to assess creditworthiness, such as looking at payment history on bills and rent payments.
- Lower interest rates: Lenders who specialize in self-employed home loans may offer lower interest rates than traditional banks, especially if the borrower has a strong credit history.