Scarborough Private Second Mortgage for Newly Self-Employed Truck Driver
A Scarborough client had worked as a bus driver for a city, then left his job and started self-employment as a truck driver only about one month before approaching us. His income as a self-employed trucker was higher, but lender qualification depends on documented history, not only current earnings. A lenders generally require a minimum two-year self-employment history. B lenders may consider shorter history by exception, especially where there is related experience, but they still typically need enough bank statements to review income and expenses. With only one month of self-employment history, the viable option was a private second mortgage. We arranged the private mortgage with the plan to revisit a B-lender refinance after the term, when the client would have more self-employment history and bank statements.
- Solution
- Private second mortgage
- Purpose
- Short-term second mortgage financing while building self-employed income history