Mortgage Connects
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
![](/-/media/value-adds/connects/71-43866-5-common-seb-businesses-400w.png?h=518&w=400&hash=F8A7842560FF016B94FFE56675BBD1EA)