We offer our self-employed clients commercial property financing - primarily through the SBA 504 Loan.

Due to the credit crisis, we are not offering residential mortgage loans at this time. The information below is no longer accurate. Please click on the link above or the "SBA 504 loans" button on the left to learn more about small business commercial loans.

Thank You.

Being a business owner has advantages but not when trying to finance a home. Many self-employed business owners are told by lenders every day that they cannot qualify for the home they would like to buy or refinance due to the complicated nature of their tax returns or business structure.

Many mortgage brokers and loan officers simply do not understand how to calculate self employment income using personal and/or corporate tax returns, and most underwriting guidelines do not allow a sizable amount of self employment income to be considered for qualifying.

In the old days, a self-employed business owner interested in a home mortgage would go to the local bank where the bank officers had first hand knowledge of the borrower's business, their credit, their net worth and (most importantly) their character and capacity to repay a loan. If everything made sense the bank would approve the loan because they were going to "keep it on their books."

The creation of the "secondary markets" - and Fannie Mae and Freddie Mac - greatly increased the ability of all lenders to make more loans and it gave banks a place to sell mortgages, so they no longer had to keep the loans in house. This effectively caused many banks to lose their appetite for self employed mortgage lending, because they could now lend to many more people and they could replenish their funds with the sale of the loans.

As time passed credit scoring was introduced and Fannie Mae, Freddie Mac and many Wall Street institutions created new loan products specifically for the self-employed. They started off with good intentions, but eventually they started allowing non-self employed borrowers to be approved for these loans with little or no documentation and very little, or no downpayment. If you are self-employed, you know how this story ends...the roof caved in and stated income loans were to blame. Not the stated loans that were designed and originated with good intentions and smart underwriting, but the later vintage of low and no doc loans, many of which should have never been possible in the first place. One can only hope that some banks will get back to the old way of lending to the self-employed, but for now almost any person with a small business and the wrong kind of self-employment income is shut out of the mortgage market.

Self Employed Mortgage Loans Now

At this time, we offer full doc loans (using tax returns) for highly qualified self employed borrowers for the purchase or refinance of a principal residence or a second home. To qualify for this mortgage, borrowers must have an impeccable track record of fiscal responsibility, excellent credit and credit scores, significant assets and a proven capacity to handle their financial obligations.