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Characteristics of 5 Common Self-Employed Businesses | Infographic

Understanding business structures helps you to calculate self-employed borrower income.

In mortgage lending, a self-employed borrower is a person who owns 25% or more in an active business.* When self-employed borrowers apply for a mortgage, lenders review their monthly income, which can be tricky considering self-employed businesses fall under one of these 5 business structures. The insights in this infographic will help you better understand risk and tax implications when analyzing self-employed borrowers’ income.

*Fannie Mae Selling Guide, December 2022

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