Self employed home loan

If a prospective buyer has worked for himself for less than two years, one type of self employed home loan option this person can consider is a no-doc contract, which is one where the buyer does not have to supply the lender with any documentation of income or assets. The disadvantage of these contracts is the higher interest rate they carry, typically 2 to 3 percentage points above a conventional loan. Still, many buyers use this option, knowing that after they have 2 years of tax returns as a self-employed person, they can refinance their contract at a lower, conventional rate.