Small business owners make use of self-certified mortgages
What about people who are in small business and don't have this type of salary information? What if they earn their money in an irregular way? This is where self certified mortgages come into play, and they are becoming much more popular for today's home buyers.
The new trends are showing that many people are taking out self certified mortgages because lending banks won't approve them for the typical mortgage type. What ends up happening is that they have to put down more money as an initial payment, and they have higher interest rates on their loan. This is putting these particular home buyers behind a little bit in terms of value, but it is one of the only ways that they can afford to purchase a home. A self certified mortgage is not an ideal way to buy a home, but it is one option. For many, having some option is better than constantly renting.
It appears as if lenders are being very careful with these loans, as they want to make sure that individuals actually have the means to make good on their commitment. With the rules associated with reporting your own income on self certified mortgages, this isn't nearly as much of a concern as it might have previously been.