Self-Employed Minorities Now Have an Easier Way to Get a Mortgage

Darrin Seppinni
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Self-Employed Minorities Now Have an Easier Way to Get a Mortgage

The Bank Statement Loan Mortgage

A whopping 15 million Americans are currently self-employed, working as independent contractors, freelancers, gig workers, small business owners, and entrepreneurs. By the end of this year? It could reach as high as 42 million.

A growing number of those go-get-em professionals are minorities — racially, ethnically, or by gender. In fact, 34% of all self-employed Americans belong to a racial minority and a full 40% are women. Among the next wave of self-employed pros — people who have plans to leave the 9-to-5 workplace and strike out on their own — the share of minorities jump even more, with nearly 40% belonging to a racial minority.

More than this, an increasing number of businesses are minority-owned. According to the U.S. Minority Business Development Agency, there are more than 8 million minority-owned businesses in our country, with the largest shares located in Texas, California, Florida, New York, and Washington, D.C.

While all this sounds well and good for American minorities, there’s also a catch here. Though these self-employed pros might be successful financially and career-wise, these entrepreneurial spirits are also at a disadvantage — at least when buying a house or refinancing one. Why? Because traditional mortgage loans aren’t built for non-9-to-5ers.

The Problem with Traditional Mortgage Loans for Self-employed Workers

Most mortgage loans are designed for the steady, clock-in and clock-out worker. They require paystubs, W-2s forms, and countless other types of paperwork that self-employed pros just don’t have.

What’s worse? They often require tax returns, too — and because most entrepreneurs and
freelancers max out their write-offs and tax deductions, these returns often show a less-thanimpressive number from a lender’s point of view.

Ultimately, this makes it harder for self-employed pros to 1) qualify for a mortgage loan in the first place and 2) secure decent interest rates when they do. It results in a vicious cycle that makes buying a home or refinancing one an uphill battle for most independent contractors. 


Bank Statement Loans: A Self-employed Pros Answer for Buying or Refinancing

Fortunately, with the growth of the gig economy, a new type of mortgage loan has emerged called the bank statement loan. Designed with self-employed professionals in mind, these don’t require W-2s or paystubs, and they don’t ask for irrelevant tax returns either.

Instead, they simply require bank statements showing your steady, consistent income — either professionally or personally. At HomeLife, our bank statement loans can make it easier for selfemployed pros to:

  • Buy a house: All you need is 10% down, 12 to 24 months of bank statements, a credit score of 640, and the cash/liquid assets to cover closing costs and three to six months of mortgage payments.
  • Refinance an existing mortgage loan: We can also help you refinance your current
    loan at 90% of its value. This could help you reduce your interest rate, your monthly
    payment, your payment term, or potentially all three. You can also get cash-out for debt
    consolidation, home improvement, or any reason.

Ready to Get Started?

If you’re self-employed, a freelancer, or anything similar, there’s an easier way to buy a house (or refinance one) than most lenders are offering. Want to learn more or apply for our 48-hour pre-approval before starting your home search? Get in touch or apply today.

Our bank statement loans are simple, offer high balances, require no private mortgage and come with no pre-payment penalties whatsoever. Download our ebook, Ultimate Guide for Self-Employed Bank Statement Mortgages, or contact us to discover how much you could save by refinancing.


More Posts for You:

Self-Employed Home Loans: Now Is the Time to Refinance

Rates for Bank Statement Mortgage Loans for Refinancing

Bank Statement Mortgage Loans for Refinancing: What Are the Rates?


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About HomeLife Mortgage

For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing.  HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Non-Prime Loans, Real Estate Investor Loans and Bank Statement Loans.

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