How do self employed borrowers qualify for a mortgage?

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.

What is a bank statement mortgage?

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.

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.

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

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.

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

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.

What is a Non QM mortgage?

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.

How much money do I need for a down payment?

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.

Can investment property income help me qualify?

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.

What documents should I have ready before applying?

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.

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

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.

Do you help borrowers in both Florida and Georgia?

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.

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

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.

Is Fall a Good Time to Buy a Home in Northeast Florida?

Diana Bunn

Sep 1

2 min read

When most people think about buying a home, spring and summer usually come to mind. But if you are considering purchasing a home in Fernandina Beach, Amelia Island, Yulee, Jacksonville, or elsewhere in Northeast Florida, September can be a very strategic time to make a move.

The fall market looks different from the hectic pace of spring and early summer. There are often fewer buyers competing for the same homes, sellers can be more motivated, and buyers typically have more room to negotiate terms that matter.

Before you start shopping, your mortgage strategy matters just as much as the house you choose.

Less Competition Can Create Opportunity

Reduced Buyer Rivalry: As fall approaches, families settle back into school, summer vacations end, and many buyers pause their search.
Better Negotiating Power: With fewer active buyers, you may gain leverage to negotiate seller credits for closing costs, home repairs, flexible closing dates, or other critical contract terms.
The Power of Preparation: Every transaction is unique, but having your financing fully pre-approved before making an offer puts you in the strongest possible position.

Get Prepared Before You Fall in Love With a House

One of the biggest mistakes buyers make is relying on basic online payment calculators instead of completing a full mortgage review. Your true buying power depends on much more than just the purchase price.

A complete strategy accounts for:

Income, assets, and credit profile
Current debt-to-income ratio & down payment size
Florida-Specific Factors: Property taxes, homeowners insurance, and HOA fees, which heavily impact your total monthly payment

“I would much rather have a buyer understand the real numbers before finding the perfect house than discover afterward that the payment is dramatically different from what they expected.”

Self-Employed? You Have Options

Northeast Florida is home to many business owners, independent contractors, commissioned employees, and real estate professionals whose income doesn't fit neatly into a W-2 box. Being self-employed doesn't mean getting a mortgage is out of reach—it just means your loan needs to be structured correctly.

Alternative Qualification Paths:

Traditional income documentation
Bank statement loan programs
Asset-based qualification
Specialized Non-QM (Non-Qualified Mortgage) solutions

Already Pre-Approved Elsewhere? A Second Look Matters

A single pre-approval isn't always the end of the conversation. If a lender told you that your debt-to-income ratio is too high, your income doesn't qualify, or your scenario doesn't fit their guidelines, a second opinion can uncover options they missed.

As a mortgage broker, I work with multiple lenders and loan programs rather than one single set of rigid rules. Whether it's finding a different loan product or restructuring your financial profile, I specialize in "second look" and loan-rescue situations—especially when you're already under contract and time is critical.

Buying This Fall? Let's Talk Strategy

Whether you are buying your first home, upgrading, purchasing a vacation property, investing, or relocating to Northeast Florida or South Georgia, the best first step is a clear conversation. A mortgage shouldn't just be about getting approved—it should align with your long-term financial goals.

Your home is personal. Your mortgage should be too.