Question 1

What mortgage options are available for self-employed borrowers?

Accepted Answer

Beyond conventional financing, self-employed borrowers may have access to programs that review documentation other than W-2s — such as bank statements, 1099s, profit-and-loss statements or qualifying assets. Availability depends on the program and your circumstances, so speak with Keon to determine which programs may apply.

Question 2

What is a bank statement loan?

Accepted Answer

It is a program where approximately 12 months of bank statements may be used as documentation in the qualification process instead of traditional income documents. It is often considered by business owners and self-employed borrowers, subject to applicable underwriting and program requirements.

Question 3

What is a DSCR loan?

Accepted Answer

DSCR stands for debt service coverage ratio. These programs are designed around an investment property's rental cash flow relative to its mortgage obligation, rather than the borrower's personal income documentation.

Question 4

Can rental income help qualify for an investment property?

Accepted Answer

Rental income may be considered in certain programs. How it is treated depends on the loan program, the property and applicable underwriting guidelines. A conversation with Keon is the way to understand what may apply to your scenario.

Question 5

What is an asset qualifier mortgage?

Accepted Answer

An asset qualifier program uses qualifying assets as part of the income qualification process. It may be a potential option for borrowers whose assets tell a fuller story than their income documents.

Question 6

What is the difference between a HELOC and a home equity loan?

Accepted Answer

A home equity line of credit is a revolving line you can draw from over time, while a home equity loan is taken as a single amount. The supplied product information states a $25,000 minimum for both. Terms, availability and qualification depend on individual circumstances and applicable lending guidelines.

Question 7

What is a cash-out refinance?

Accepted Answer

A cash-out refinance replaces your existing mortgage with a new mortgage for a larger amount, with the difference available to you as cash, subject to applicable underwriting and program requirements.

Question 8

What is a rate-and-term refinance?

Accepted Answer

A rate-and-term refinance replaces your existing mortgage with a new one that changes the interest rate, the loan term or both, without taking additional cash out.

Question 9

Can 1099 income be used for mortgage qualification?

Accepted Answer

Certain programs allow qualification using eligible 1099 documentation. Whether it may be used, and how, depends on the program and applicable underwriting guidelines.

Question 10

What documents should I have ready before speaking with a loan officer?

Accepted Answer

It helps to gather whatever documents describe how you earn and what you hold — recent income documentation, bank or asset statements, business records if you are self-employed, and details of any property involved. Keon will tell you exactly what a given program looks at.

Mortgage questions, answered plainly.

Your financial situation is unique. Your mortgage strategy should be too.

Mortgage questions, answered plainly.

What mortgage options are available for self-employed borrowers?+

What is a bank statement loan?+

What is a DSCR loan?+

Can rental income help qualify for an investment property?+

What is an asset qualifier mortgage?+

What is the difference between a HELOC and a home equity loan?+

What is a cash-out refinance?+

What is a rate-and-term refinance?+

Can 1099 income be used for mortgage qualification?+

What documents should I have ready before speaking with a loan officer?+

Your financial situation is unique. Your mortgage strategy should be too.