Are you self-employed, contracted employee or paid based on sales commission? Do you claim your income on your personal income tax returns; are you paid through dividends or do you keep your income in the company? There are many factors to consider if you are not a salaried employee and how you claim your income will determine the amount of down payment required.
If you have been in business for two years and have claimed your income on your personal taxes, you will require a minimum 5% down payment.
Alternatively if your personal income is not enough to qualify but you have 10% down payment, a stated income program might be a good option. This type of product looks at aspects of the business, and assesses if it is reasonable for you to support a mortgage.
You will need 20% down payment if you have been in business for less than two years or don’t claim personal income from your business.