A self-employed loan, also known as a self-employed mortgage or business owner loan, is a type of mortgage designed for individuals who are self-employed, freelancers, or small business owners. Traditional mortgage loans often require steady, predictable income, which can be challenging to demonstrate for self-employed individuals who may have fluctuating income or write-offs for tax purposes. Self-employed loans are tailored to address these unique financial situations by considering alternative documentation and income verification methods.

Lenders offering self-employed loans typically require documents such as tax returns, business financial statements, bank statements, and other financial records to assess a borrower’s income and ability to repay the loan. These loans aim to make homeownership accessible to those who don’t fit the typical employment and income profiles required by standard mortgage loans. Self-employed loans can have different terms and qualifications than traditional mortgages, so working with a knowledgeable lender or mortgage broker can be crucial for obtaining the best financing options.