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 Refinancing Worth It in 2026? What Homeowners in Nassau County + Jacksonville Should Know

Diana Bunn

Jul 1

2 min read

One of the most common questions I hear right now is:

“Should I refinance, or should I wait?”

The answer is not always about rates. It is about math.

Too many homeowners think refinancing only makes sense if rates drop dramatically. That is outdated thinking.

In many cases, refinancing can improve your financial position even without a huge rate drop—especially here in Nassau County and Jacksonville, where many homeowners are sitting on strong equity and higher-interest debt.

When Refinancing Makes Sense

1. You Bought at a Higher Interest Rate

Even a 1% improvement can create meaningful monthly savings depending on your loan size. That savings adds up quickly—especially when your mortgage payment already feels like it deserves its own zip code.

2. You Want to Consolidate High-Interest Debt

Credit cards charging 20%+ interest are not exactly sending thank-you notes. Using home equity strategically to eliminate high-interest debt can dramatically improve monthly cash flow and reduce financial stress.

The key word here is strategically (not “let’s make bad decisions with better lighting”).

3. You Need Funds for Renovation or Investment

Whether you are updating your primary home, building an outdoor space you will actually use, or purchasing an investment property, your home equity may be one of your strongest financial tools.

4. You Want to Remove Mortgage Insurance

Sometimes refinancing helps eliminate monthly mortgage insurance sooner than waiting for automatic removal. That can create immediate monthly savings.

For Realtors: Refinancing Creates Future Buyers

This part gets overlooked: helping past clients refinance is not just good service—it creates future purchase opportunities.

When clients improve cash flow, eliminate debt, and strengthen financial stability, they become stronger move-up buyers later. That means smarter long-term relationships and stronger referral business.

Refinance conversations are not separate from purchase business. They are part of it.

What Homeowners Should Do First

Do not guess. Review.

A real refinance analysis should answer:

What is your current rate?
What are your long-term goals?
How much equity do you have?
Are you carrying high-interest debt?
Does the refinance improve your total financial picture?

The goal is not just a lower payment. The goal is better financial positioning.

Sometimes that means refinance. Sometimes it means stay put. Both are good answers when they are based on facts.

Final Thought

The best financial decisions are rarely the flashy ones. They are the smart, boring, strategic ones. Refinancing is one of those.

If you have been wondering whether it makes sense for you, let’s run the numbers. Because “I was waiting to see” is not usually the strongest wealth-building strategy.