Tag: Self employed borrower

How Hard Money Lenders Qualify Self-Employed Borrowers 

Applying for a Conventional Mortgage  To purchase or refinance, self-employed borrowers might have an issue qualifying.  Lenders are required to document the borrower’s ability to repay through a formula called DTI ratio (debt-to-income). There are two forms of DTI: front-end and back-end. Front-end DTI equals PITI (principal, interest, taxes, and insurance) divided by gross monthly income. Back-end DTI equals PITI plus…

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