Business Verification for Self-Employed Mortgage Loans
Why Business Verification is Required for Self-Employed Borrowers
Non-QM Mortgage Loan Business Verification Examples
Self-employed borrowers applying for Non-QM mortgage loans must verify that their business is active, legally registered, and financially stable. Unlike traditional W-2 employees, self-employed individuals do not have an employer to confirm their job status and income.
To ensure legitimacy and stability, lenders conduct business verification checks as part of the mortgage approval process. This step is essential for Bank Statement Mortgage Loans, 1099 Mortgage Loans, and P&L-Based Mortgages.
Documents Required for Business Verification
Lenders may require one or more of the following documents:
1. Certificate of Good Standing
- Issued by the Secretary of State, confirming that the business is legally registered and active.
- Required for LLCs, corporations, and partnerships applying for a mortgage.
2. Employer Identification Number (EIN) Verification
- Confirms that the business is registered with the IRS.
- If a borrower operates as a sole proprietor, an EIN is not always required.
3. Business License (If Applicable)
- Required for businesses in regulated industries, such as healthcare, construction, or financial services.
4. Articles of Incorporation or LLC Operating Agreement
- Confirms the borrower’s ownership percentage and business structure.
5. Personal and Business Bank Statements
- Lenders may require 12-24 months of bank statements to verify financial stability.
- Bank Statement Loans require separate business and personal accounts to avoid commingling of funds.
6. Third-Party Business Verification
- Some lenders verify businesses through online directories, business websites, or professional listings.
? Learn More About Self-Employed Mortgage Loans
How Lenders Verify Business Legitimacy
Step 1: Confirm Business Registration
Lenders check state business databases to confirm that the company is legally active.
Step 2: Review Financial Records
Lenders analyze bank statements, profit & loss statements, and tax documents to verify cash flow.
Step 3: Validate Business Operations
Lenders may check:
- Company website and online presence
- Third-party business directories (Google My Business, Yelp, BBB, etc.)
- Invoices, contracts, or client payments
? See Bank Statement Mortgage Loan Requirements
Apply for a Self-Employed Mortgage Today
If you are a self-employed borrower, The Mortgage Calculator can help you secure a Non-QM mortgage without traditional tax return requirements.
Non-QM Loan Program Terms:
- Up to 90% LTV Purchase with No MI
- Up to 80% LTV Cash Out
- 599 Min FICO
- Self Employed Programs: 1099, Bank Statements, P&L
- 30 Year Fixed & 40 Year Interest Only Available
- Up to $3M Loan Amount
- 1-4 Units, Condos, Manufactured Homes, Rural
- Up to 55% DTI
