COVID Financing Restrictions Placed On Self Employed Borrowers Begin To Loosen Up

Gail Lagges blog, Home Buying Tips, Title, Escrow & Mortgage, Uncategorized Leave a Comment

Starting February 1, 2022, two of the largest COVID-19 loan restrictions have finally been loosened by Fannie Mae and Freddie Mac. The mortgage giants rescinded the rules put in place back in June 2020 that required self-employed borrowers to provide a year-to-date profit and loss statement that reported revenue, expenses, net income, as well as a few months of their most recent bank statements.

If the self-employed borrower’s year-to-date income wasn’t roughly the same as the previous years, they could not qualify for a loan. These restrictions were put in place to show how a business was faring during the pandemic; however, this snapshot didn’t take into consideration the seasonality of a business or if they received any funds from the Payment Protection Plan.

This rule cost a lot of self-employed borrows the opportunity of locking in some of the lowest interest rates on record. While interest rates are higher than they were a year ago, they are still considered low by industry standards. Now is a great time for self employed borrowers who were previously denied or had to get a higher interest rate through an exotic loan option, to try again.

Please feel free to reach out to Dawn Schweiker or your Re/Max Associated Realtor for more information.

Dawn Michelle Schweiker,
NMLS 230645
Cell: 609-560-2052
Dawn Schweiker is a mortgage loan broker with over 25 years of experience in the mortgage industry. She has the knowledge and experience to help guide borrowers and real estate agents to the programs that best suit their needs. As a loan broker with Premier Mortgage Partners of Florida, she has the ability to not only shop interest rates between lenders, but she also has access to over 300 mortgage programs to help borrowers with a wide array of products.


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