Question 1

How do self employed borrowers qualify for a mortgage?

Accepted Answer

Self employed borrowers can absolutely qualify for a mortgage. The right approach depends on how your income is documented, how long you have been in business, your credit profile, available assets, debts and the type of property you are purchasing. Traditional mortgage programs generally evaluate income using tax returns and business documentation, while alternative programs may allow bank statements, 1099 income, assets or other methods of documenting your ability to repay.

Question 2

What is a bank statement mortgage?

Accepted Answer

A bank statement mortgage is a type of mortgage designed primarily for self employed borrowers whose tax returns may not fully reflect the cash flow their business generates. Instead of qualifying primarily from tax return income, an approved lender may analyze deposits shown on personal or business bank statements over a specified period. Guidelines vary by lender and program.

Question 3

What is a DSCR loan?

Accepted Answer

A DSCR loan, or Debt Service Coverage Ratio loan, is designed primarily for real estate investors. Instead of qualifying based primarily on the borrower's personal employment income, the lender evaluates the property's rental income compared with its housing expenses. Down payment, credit, reserves, property type and rental income requirements vary by lender.

Question 4

Can I qualify if my tax returns show less income than my business actually produces?

Accepted Answer

Possibly. Legitimate business deductions can reduce the taxable income shown on a tax return. Traditional mortgage financing may still work depending on how your income is calculated, and there may be alternative options such as bank statement loans, asset based programs or other Non QM financing.

Question 5

Can I get a mortgage if another lender already turned me down?

Accepted Answer

Yes, in some cases. A decline from one lender does not necessarily mean every lender will reach the same conclusion. Guidelines vary by lender and loan program and approval can never be guaranteed, but a second opinion can sometimes find a solution.

Question 6

What is a Non QM mortgage?

Accepted Answer

A Non QM mortgage is a loan that does not follow all of the traditional Qualified Mortgage documentation requirements used by many conventional loan programs. Examples may include bank statement loans, DSCR loans, asset based qualification and certain alternative income documentation programs.

Question 7

How much money do I need for a down payment?

Accepted Answer

The amount needed for a down payment depends on the loan program, property type, occupancy, credit profile and other factors, and guidelines vary by lender and loan program. Some eligible borrowers may qualify for programs requiring little or no down payment.

Question 8

Can investment property income help me qualify?

Accepted Answer

Yes. Depending on the loan program and the property, rental income may be used when qualifying for an investment property mortgage, including DSCR programs that focus on the property's rental income and expenses. Guidelines vary by lender and program.

Question 9

What documents should I have ready before applying?

Accepted Answer

The documents needed depend on your income and the type of mortgage you are considering, ranging from pay stubs and W2s for traditionally employed borrowers to tax returns, business documentation and bank statements for self employed borrowers.

Question 10

Why would I use a mortgage broker instead of one bank?

Accepted Answer

As a mortgage broker, Diana Bunn can work with multiple lenders and compare programs, guidelines and pricing based on your individual situation, which can be especially valuable for self employed borrowers, investors and clients with complicated income or credit scenarios.

Question 11

Do you help borrowers in both Florida and Georgia?

Accepted Answer

Yes. Diana Bunn helps homebuyers, homeowners and real estate investors with mortgage financing in both Florida and Georgia, including conventional, jumbo, government, DSCR, bank statement and other Non QM financing options.

Question 12

Do you work with buyers in Fernandina Beach, Amelia Island, Yulee and Jacksonville?

Accepted Answer

Yes. Diana Bunn regularly works with homebuyers, homeowners, real estate agents and investors throughout Fernandina Beach, Amelia Island, Yulee, Nassau County, Jacksonville and the surrounding Northeast Florida communities.

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