Length of Self-Employment

Homium generally requires originators to obtain a two-year history of the borrower’s prior earnings as a means of demonstrating the likelihood that the income will continue to be received.

However, a person who has a shorter history of self-employment — 12 to 24 months — may be considered, as long as the borrower’s most recent signed federal income tax returns reflect the receipt of such income as the same (or greater) level in a field that provides the same products or services as the current business or in an occupation in which they had similar responsibilities to those undertaken in connection with the current business. In such cases, the underwriter must give careful consideration to the nature of the borrower’s level of experience, and the amount of debt the business has acquired.