Self Employed:
How long do you have to have been self-employed to get a loan?
While the majority of lenders require individuals to be self-employed for around two to three years, some may consider people who have been self-employed for only one year.
However, a lender’s decision isn’t solely based on how long you have been self-employed. For some banks, the most important thing is not how long you’ve owned your business, but whether it’s financially stable.
How much can you borrow for a mortgage if you are self-employed?
You can generally borrow up to 4.5 times your annual income if you meet the mortgage lender’s requirements as a self-employed individual although some will offer 5 times your income. Under ideal circumstances, some specialist lenders can offer up to 6 times your annual income.
What is the necessary documentation?
- Two years of personal income tax returns
- Two years of business tax returns
- Business License
- Year-to-date profit and loss statement (P&L)
- Balance sheet