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.

Summer Buying Season Is Here: What Buyers and Realtors Need to Know in Nassau County + Jacksonville

Diana Bunn

Jun 1

2 min read

June kicks off one of the busiest seasons in real estate across Nassau County and Jacksonville.

Families want to move before the new school year, sellers want to take advantage of strong buyer activity, and Realtors are working overtime trying to keep deals together in a market that still demands strategy over speed.

The truth is, summer buyers are not just looking for houses. They are looking for confidence.

That starts with the right financing plan.

Buyers: Stop Waiting for the "Perfect Time"

Many buyers are still sitting on the sidelines waiting for rates to drop.

Here is the honest answer: waiting can cost more than buying.

Home prices continue to hold strong in desirable areas like Fernandina Beach, Amelia Island, and throughout Jacksonville's fastest-growing communities.

If rates improve later, refinancing is an option.

Missing the right home is harder to fix.

The better strategy is understanding your options now.

Temporary Rate Buydowns

Seller-paid 2/1 and 1/0 buydowns can significantly reduce your payment during the first years of homeownership.

This gives buyers flexibility while helping sellers move inventory faster.

Everybody wins. We love those.

Low Down Payment Options

You do not need 20% down.

FHA, VA, Conventional low-down-payment programs, and down payment assistance options help buyers get in the game faster than they expect.

Most people are surprised by how close they actually are.

Creative Financing for Unique Buyers

Not every borrower fits the standard checklist.

That is where strong lending matters.

We help buyers with:

Self-employed income using bank statements
Investor financing through DSCR loans
Asset depletion options
Non-warrantable condos
Credit score challenges
Complex income structures

Sometimes the answer is not no.

Sometimes it is just "you called the wrong lender first."

Realtors: Your Lender Should Make You Look Better

Your lender should not be the reason your deal falls apart.

Realtors need lending partners who can move fast, communicate clearly, and fix problems before they become closing disasters.

That means:

Clean preapprovals
Fast underwriting
Strong listing-side communication
Appraisal issue solutions
Creative structuring for difficult files
Real answers, not vague "we'll see"

In today's market, speed matters.

But clarity matters more.

June Market Advice

If you are buying this summer, get preapproved before house hunting.

Not after.

Not "kind of."

Actually preapproved.

Because in this market, "we're thinking about buying" and "we can close" are two very different conversations.

And trust me, listing agents know the difference.

Final Thought

Your home is personal. Your mortgage should be too.

Whether you are buying your first home, upgrading for your growing family, investing, or trying to save a deal that feels impossible, the right strategy changes everything.

June is not about guessing.

It is about planning.

And planning wins.

Summer Buying Season Is Here: What Buyers and Realtors Need to Know in Nassau County + Jacksonville

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