Our purpose at Key Momentum Mortgages Ltd. is to find the right mortgage services that fits your self-employment business income. Business for Self mortgages (BFS), also known as a self-employed mortgage or a stated income mortgage, are a type of mortgage designed for individuals who are self-employed or have income from non-traditional sources.

Traditional mortgage applications typically require proof of income through pay stubs, tax returns, and employment verification. However, self-employed individuals may often face challenges in providing these documents due to the nature of their income, which can vary from month to month or may not be reflected accurately on tax returns.

Business for Self mortgages take into account the unique circumstances of self-employed borrowers by using alternative methods to assess their income and ability to repay the loan. Instead of relying solely on tax returns, the mortgage lender may consider other financial documents, such as bank statements, business financial statements, invoices, contracts, or a combination of these, to verify the borrower's income.

Here are a few key features of a Business for Self mortgage:

1. Stated income: Instead of requiring traditional income documentation, self-employed borrowers can state their income on the mortgage application, and the lender will use this information to evaluate their eligibility.
2. Alternative documentation: Lenders may request additional documents, such as business bank statements, profit and loss statements, or contracts, to support the stated income and assess the borrower's financial stability.
3. Higher down payment or interest rates: Since self-employed mortgages often involve higher risk for lenders due to the limited income documentation, borrowers may be required to provide a larger down payment or pay slightly higher interest rates compared to traditional mortgages.
4. Customized underwriting: Lenders offering Business for Self mortgages may have specialized underwriting guidelines to assess the creditworthiness of self-employed borrowers. They will consider factors like credit history, industry experience, business stability, and overall financial strength.