Self-Employed Borrower is any individual who has a 25% or greater ownership interest in a business.
Typically, the following factors must be analyzed before approving a mortgage for a self-employed borrower:
• Stability of the borrower’s income;
• Location and nature of the borrower’s business;
• Demand for the product or service offered by the business;
• Financial strength of the business; and
• Ability of the business to continue generating and distributing sufficient income to enable the borrower to make the payments on the requested mortgage.« Back to Glossary Index