Can I get a loan if Im self employed?

There are many programs available to people who are self-employed. If your credit score is good enough, the lender wont need to verify your income at all.

Loan programs such as Stated Income or No Documentation loans are available to those self-employed individuals who qualify.

Stated Income loans will allow you to "state" your monthly income without verification of the amount. The lender will verify that you are self-employed through your accountant or book keeper. The lender will typically require that your accountant or book keeper write a letter stating that you have been self-employed for no less than 2 years.

The No Documentation loan is similar to the Stated Income program, but the borrower does not need to provide any documentation whatsoever in regards to income, employment, and assets.

When using a stated income loan and you are stating your income on the loan application be aware that you are not supposed to lie about what your income actually is. With self-employed borrowers, many times it is hard to provide all of the income documentation required for a mortgage loan, and for a very small rate increase you can alleviate the headache of trying to get all of this documentation together and just simply state how much money you make. If you are stating an income on your application that an underwriter does not feel is consistent with what you do for a living then the underwriter may still require income documentation at their own discretion.

Self employed people used to have a difficult time obtaining financing for homes. Today there are various programs custom tailored to the specific needs of the self employed borrower. Whether there is fluctuating income or cash reserves in savings, just know that there are solutions available to you.

Besides different types of documentation for self employed individuals. There are some types of mortgages that are specifically designed for self employed people. One example would be a Pay Option ARM. These loans offer flexible payment options, which is usually an advantage for the self employed who have variable income.