Self Employed / Low Document Mortgage
Self Employed? Why is it so hard to get approval in Chartered Banks? Do you fall in one of the categories?
- Self employed borrowers who are unable to provide traditional income verification but have a proven 2 yr history of managing their credit and finances responsibly.
- Self employed borrower income should be reasonable base on length of operation, type and size of business and should be able to service the required mortgage as per the Gross debts service and Total debt service guidelines.
- Up to 90% LTV for purchase transactions
- 80% LTV for Refinance
- Amortizations up to 25 years
- Purchase, Purchase plus improvement, Secondary home, progress advances, refinances Less than 1 million
- Progress Advances ( Maximum 2 units) - one must be occupied as the principal residence
- 680+ Credit Score - GDS 39%t/TDS 44%
- less than 680 Credit Score - GDS 35%/TDS 42%
- Spousal guarantors acceptable
- Down payment must come from own resources
- less 2 years - BFS can do stated income
- 2 years + - has to prove their income (see below)
- No Tax arrears
- Minimum of 2 years - BFS tenure
- Borrowers must have minimum 2 year BFS tenure if purchasing a secondary home
- Documentation required for business for self more than 2 years:
- Articles of incorporation
- Two years -Notice of Assessments - showing no taxes owing.
- Two years -T1 Generals with statement of business activities
- Two years -Financial Statement prepared by an accountant
- When a 2nd borrower is salaried: Written confirmation of income in the form of a job letter, current pay stub and 2 year T4 and 2 year Notice of assessments.
- One form of written third party documentation confirming self employment.
- No Credit delinquencies in the past 12 months, no previous bankruptcy, no defaults on residential mortgages in the past 7 years, Genworth will average the scores pulled from both credit bureaus for each borrower.
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