Mortgage questions, answered
Real questions borrowers ask, answered in plain English by The Mortgage Advisory, a mortgage lender and broker licensed in California, Texas, Florida, and Colorado (NMLS #1549739).
5 answers in Self-Employed / Non-QM
Clear searchDoes a bank statement loan cost more than a regular mortgage?
Usually, yes. Bank statement loans typically carry a higher rate than conventional loans and need a bigger down payment, often 10% to 20% or more. For self-employed borrowers whose tax returns don't show their real income, it's often still the right move, especially with a plan to refinance into a conventional loan later. The Mortgage Advisory is the direct lender on both, so we show you the real price difference side by side.
Can I get a mortgage with less than two years of self-employment?
Often, yes. Many lenders will accept 12 to 24 months of self-employment if you worked in the same field before going out on your own, like a nurse who opens her own staffing business. Some Non-QM programs also work with a shorter history. The Mortgage Advisory will look at your full work history, not just your start date.
What documents do self-employed borrowers need, and how is my income calculated?
For a regular loan, you'll usually need two years of personal (and business) tax returns, a year-to-date profit and loss, and bank statements. Your income is your net business income plus certain non-cash add-backs like depreciation, averaged over two years. The Mortgage Advisory reviews your returns before you apply, and if they don't show your real income, we can look at bank statement options instead.
Can I get a mortgage if I'm self-employed?
Yes. Most self-employed borrowers qualify with a conventional loan using about two years of tax returns. If write-offs make your taxable income look too low, a Non-QM loan can use your bank statements, 1099s, or a rental property's income instead. The Mortgage Advisory is the direct lender on both conventional and Non-QM loans, so we can look at your business the way it really works.
What is a DSCR loan, and how do I qualify for one?
A DSCR loan is for rental properties: you qualify based on whether the property's rent covers its payment, not on your personal income or tax returns. Most programs look for rent at or above the full monthly payment and ask for about 20% to 25% down. The Mortgage Advisory is the direct lender on DSCR loans in California, Texas, and Colorado (in Florida, we arrange them as a licensed mortgage broker), and we're upfront about the prepayment penalties that often come with them.