Bypassing The Big Banks for a Home Loan

When it comes to securing a home loan, every “big bank” has a set of criteria they use to discern whether or not to award a loan:

  • A DTI (debt-to-income ratio) of 43% or less
  • A 20% down payment
  • A 720+ credit score
  • 6, 9,12 or 18 months of assets/reserves
  • 4 to 7 years removed from a bankruptcy or major credit-hurting “life” event

Do you meet these criteria? It’s OK if you don’t—they’re pretty stringent (especially for self-employed professionals).

Here’s the good news: there are loan programs for self-employed individuals that “expand” the above criteria:

  • You can put as little as 5% to 10% down
  • You can have a 55% DTI
  • You can have a 580 credit score
  • You can have a credit-affecting “life event” as little as a few months ago

Now, the above lineup probably seems too good to be true, and it is at first glance.

It all comes down to common sense and balance.

I’m happy to discuss this further with you if you have any questions.

Recent Posts

Mortgage Loans for Gig-Workers, 1099, Social Media Influencers, Self Employed and More!

While the gig economy has been around for a while, since COVID hit, it has completely blown up. In 2020, the gig economy grew by 33%, expanding 8.25x faster than the US economy as a whole. The same year, 2 million Americans tried “gig work” for the first time, and 34% of the US workers Read More…

February Market and Company News!

Jobs report gives Fed green light for more rate hikes The Federal Reserve is almost certainly raising interest rates in March. The only question now is by how much. The strong January jobs report is the last piece of evidence the Fed needs to show that inflation pressures are not going away anytime soon. With Read More…

Demographics are changing for Remote Workers- Including Income Taxes and Lifestyle changes

Where we live has been dictated by where we can find a good job. That truism has defined much of where Americans reside — clustered in and around lucrative job markets.  Working remotely isn’t just another perk in a benefits package, it’s the opportunity to move freely and still continue the same career, ideally with Read More…