Loans for self-employed borrowers are definitely out there for the taking. If you work for yourself, there are services, albeit different, that are available to you. For instance, your health insurance might be through a spouse or purchased on your own. For taxes, you fill out specific self-employment forms. And if you need to borrow money, you can do that, too!

Loan Options for Self-Employed Borrowers

The borrowing process for those who work for themselves is getting easier! There are new "no document" or "no ratio" loans for self-employed borrowers. These loans take away much of the worry that self-employed people may have about their financial records.

How Self-Employed Borrowers Benefit 

There is no reason you should be denied a loan just because you are self-employed. You may have had one bad year but several good years surrounding that. It would be unfair for you to be denied when the yearly earnings are averaged, which is what they do with some typical loans. With just one tough year, the average could be greatly affected. There are loans for self-employed borrowers that do not require income verification.

How These Loans Works 

With a no document loan, you can borrow based upon good credit. This type of loan is actually available to self-employed borrowers and those who are not self-employed. If you are just starting out in your career and have good credit (but not a long employment history), this type of loan will help you avoid the hassle of submitting past income tax forms for proof of income. Some of these loans can even be done over the phone by a reputable national bank!
 
Loans for self-employed borrowers exist, but make sure not to overextend yourself and take on more than you can handle. Also, only accept a loan from a legitimate company. You have options! Check out our self-employment resources for more help.