If your borrower is self-employed for less than two years, they should still be able to get a loan under many circumstances. We are not subject to Fannie Mae’s rule on the issue. Rather, as a 100% true portfolio niche exception-based lender, we look at every scenario and make a determination based on the specific risk presented.
Example: your client has been a CEO for 17 years making $500,000/year. He has $1,000,000 in assets. He falls in love, quits his job, and goes on an 8-month wedding engagement. When he returns he opens his own consulting firm in the same line of work he used to do as a CEO…he starts pulling in $10,000/month consistently for 5-months. He has great credit. Now Fannie Mae would certainly have an issue with this loan because of the amount of time self-employed and because of an employment gap. This is a potential deal though. Of course, an underwriter needs to assess the entire risk profile, but this is probably a doable deal.
Please call Derek or send him an email regarding your specific scenario and let’s see if we can get your client into a loan. Minimum loan amount is $300,000.