Home Loan Tips for Self-Employed Borrowers

If you’ve lived in your home for several years, you may have built up significant equity that you can access for remodels, home improvement projects, or other needs. Many homeowners choose to upgrade their existing homes and fund that through HELOCs.

For people who are self-employed, it can be hard to qualify for a HELOC. But at East West Bank, we can qualify borrowers based on their assets, rather than just income.

Pooling resources for home sweet home

For many families, a home is a haven and support structure for multiple generations. Some may choose to be coborrowers together. Families may often pool money for a larger down payment, and other relatives, or benefactors may contribute.

In these cases, a gift letter can be included with the loan application. The letter should state the amount of the gift, relationship to the homebuyer and indicate that no repayment is expected.

The key takeaway is that if you are self-employed, new to the country, have a limited credit history, or a unique circumstance, owning a home is still within reach. With advance planning, the right paperwork and an experienced lender, nonconventional borrowers can get into a dream home.

Ready to get started? Explore our unique home loan programs.