A contractor mortgage is a type of loan that can help homeowners save their home from foreclosure or bankruptcy. Contractor mortgages are designed to help individuals who work as contractors, freelancers, or independent contractors to secure financing for a home purchase or refinance.
Contractors often find themselves in a difficult financial position due to their unpredictable income. This can make it difficult to secure a traditional mortgage, as lenders are less likely to offer a loan if the borrower’s income is not consistent. A contractor mortgage company like Jet Direct Mortgage can provide a solution to this problem by allowing borrowers to use their contracts as evidence of their income.
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With a contractor mortgage, lenders will consider the borrower’s contracts as evidence of their income. This can provide peace of mind for borrowers who are worried about their ability to secure a loan. The lender will also evaluate the borrower’s credit score and other financial information, such as their debt-to-income ratio.
Contractors can use a contractor mortgage to purchase a new home or to refinance an existing mortgage. This type of loan is typically available for up to 90 percent of the purchase price or the appraised value of the home. The interest rate for a contractor mortgage may be slightly higher than a traditional mortgage, but the borrower may be able to negotiate a lower rate if they have a strong financial history.
