Self Employed Mortgage Solutions for Self Employed Borrowers Self employed individuals often ask … “Why is it so difficult to qualify for mortgage financing?” “I have a business that is thriving, and I take the deductions that are allowed. After taking the allowable deductions my net income is not sufficient to qualify for a mortgage." “What do I need to do to qualify for a mortgage?” The mortgage industry has created loan programs that rely primarily upon your credit scores and assets to assess your ability to repay debts. The primary categories of loan programs that will help you qualify for mortgage financing are: Stated Income - You simply state your income on the application. Your employment is verified, but not your income. The lender will review your credit history, and verified assets to determine if these figures are consistent with the information that you provided. No Ratio - This type of loan program will review credit scores, employment history, and the assets of the applicant. No income is stated, and no debt/income ratios are calculated. This loan program is designed for individuals that have significant income, but due to lender underwriting requirements and accounting practices, the applicant’s debt to income ratios are too high for a conventional loan. No Income/No Asset - NINA loans are underwritten based upon the employment history and credit scores of the applicant. This type of financing may have restrictions on the type of property and loan to value of the property. (LTV). No Doc - With this type of loan only the applicant’s credit scores, and the property loan to value (LTV) are evaluated as conditions for loan approval. This type of program will generally require significant equity in the property for a refinance, or a large down payment as a purchase transaction. No doc loans are one of the more expensive types of financing options.