Any individual who has a 25% or greater ownership interest in a business is considered to be self-employed.
The following factors must be analyzed for a self-employed borrower:
- the stability of the borrower’s income,
- the location and nature of the borrower’s business,
- the demand for the product or service offered by the business,
- the financial strength of the business, and
- the ability of the business to continue generating and distributing sufficient income to enable the borrower to make the payments on the requested mortgage.