At Evans Brokerage, we understand that securing a mortgage as a self-employed individual can be challenging. Traditional mortgage processes often rely heavily on standard income documentation, which doesn’t always reflect the true financial situation of self-employed borrowers. That’s where Non-Qualified Mortgage (Non-QM) loans come in, offering flexible solutions tailored to meet the unique needs of self-employed individuals in Missouri and Kansas.

Home Loans for the Self-Employed

Self-employed individuals often face hurdles when applying for conventional home loans due to inconsistent income streams and complex financial records. Unlike salaried employees who can easily provide pay stubs and W-2 forms, self-employed borrowers typically rely on tax returns, profit and loss statements, and other financial documents to verify income.

Non-QM loans provide an alternative path for these borrowers. At Evans Brokerage, we specialize in helping self-employed individuals navigate the mortgage landscape by offering personalized loan solutions that consider their unique financial situations.

Asset-Based Financing Qualification

Asset-based financing is a valuable option for self-employed borrowers who may not have consistent income but possess significant assets. This type of financing allows borrowers to qualify for a mortgage based on the value of their assets rather than their income alone.

Benefits of Asset-Based Financing:

1. Flexibility: Unlike traditional mortgages, asset-based financing does not require extensive income documentation.
2. Leveraging Assets: Borrowers can use various assets, such as investment portfolios, real estate, and savings, to secure a loan.
3. Customized Solutions: Evans Brokerage evaluates each borrower’s assets to offer tailored mortgage solutions.

By leveraging their assets, self-employed individuals can secure favorable loan terms and achieve their homeownership dreams.

How to Get a Loan When You Are Self-Employed

Securing a mortgage as a self-employed individual involves several steps. Here’s a guide to help you navigate the process:

Step-by-Step Guide:

1. Gather Necessary Documentation:
   • Tax returns for the past two years.
   • Profit and loss statements.
   • Bank statements.
   • Business licenses and contracts.
2. Maintain a Strong Credit Score:
   • Pay bills on time.
   • Keep credit card balances low.
   • Avoid opening new credit accounts.
3. Organize Financial Information:
   • Ensure all financial documents are up-to-date and accurate.
   • Separate personal and business finances.
4. Consult with Evans Brokerage:
   • Our team of experts will guide you through the application process.
   • We help you present your financial information effectively to increase approval chances.

By following these steps and working with Evans Brokerage, self-employed borrowers can simplify the mortgage application process and enhance their chances of securing a loan.

Bank Statement Loan Solutions for the Self-Employed

Bank statement loans are designed specifically for self-employed individuals who may not have traditional income documentation. These loans allow borrowers to qualify based on their bank statements rather than tax returns.

Criteria and Documentation for Bank Statement Loans:

1. Bank Statements:
   • Typically, 12 to 24 months of personal and/or business bank statements are required.
2. Credit Score:
   • A good credit score is beneficial, though requirements vary by lender.
3. Proof of Business Ownership:
   • Business licenses, LLC documents, or other proof of business ownership.

Success Stories:

At Evans Brokerage, we have helped numerous self-employed clients secure bank statement loans. For example, a freelance graphic designer from Kansas was able to purchase her dream home using our bank statement loan solution, despite inconsistent monthly income.

Self-Employed Mortgage Options

Self-employed borrowers have several mortgage options to choose from. Here are some popular choices:

1. Stated Income Loans:
   • Borrowers state their income without extensive documentation.
   • Ideal for those with high credit scores and substantial assets.
2. Bank Statement Loans:
   • Qualification based on bank statements.
   • Suitable for those with irregular income.
3. Asset-Based Loans:
   • Qualification based on assets rather than income.
   • Great for borrowers with significant assets but inconsistent income.
4. Interest-Only Loans:
   • Lower monthly payments initially, with payments consisting only of interest.
   • Beneficial for borrowers expecting income growth in the future.

Choosing the Right Option:

Evans Brokerage works closely with self-employed borrowers to determine the best mortgage option based on their financial situation. Our expertise in non-QM loans ensures that each client receives personalized and effective mortgage solutions.

Conclusion

Securing a mortgage as a self-employed individual in Missouri and Kansas doesn’t have to be daunting. Evans Brokerage is dedicated to providing specialized mortgage solutions that cater to the unique needs of self-employed borrowers. If you’re self-employed and looking to buy a home, contact Evans Brokerage today to explore your mortgage options and start your journey towards homeownership.