How to Get a Self-Employed Mortgage Loan in 2020

Darrin Seppinni
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New Rules for Getting Self-Employed Bank Statement Loans 

Forget the uphill battle self-employed professionals used to face when getting a mortgage. Now, thanks to the emergence of bank statement loans, entrepreneurial homebuyers across all 50 states have an easier, simpler way to finance their purchases.  Here’s what you need to know to get about getting a self-employed mortgage loan in 2020.

Skip the Tax Returns and Show Cash Flow Instead

Self-employed homebuyers have always had difficulty qualifying for traditional mortgage loans. Designed for borrowers with 9-to-5 jobs, regular paychecks, and W-2 income, these loans require documentation that self-employed pros simply don’t have. 

Though showing annual tax returns can help, , they often don’t reflect a self-employed borrower’s true income and financial capabilities — especially if they’re maximizing deductions for their business.

Historically, this has left self-employed pros in a bind, yearning to buy a home but with very few financing options with which to do so. Throw in the ever-rising costs of housing across the country, and the battle was even harder.

That’s where bank statement loans come in. 

The ideal financing vehicle for self-employed pros, entrepreneurs, freelancers, and gig workers, self-employed bank statement mortgage loans allow non-traditional borrowers to buy the dream homes they deserve. 


Here’s how these loans differ from traditional mortgage options:

  1. Your tax returns don’t matter. They won’t show your true income anyway, so why bother?
  2. Cash flow is king. Your bank statements speak to your true financial power, as well as your spending and saving habits. These are the biggest influencer in your self-employed mortgage application.
  3. Skip the W2s and pay stubs. Again, your bank statements have all the info we need to gauge your financial capabilities. 
  4. Your professional life does the talking. Have a license or certification? At least two years of experience as an independent contractor? That’s all the confidence we need in your career.

Your credit score will also play a role in your application for a self-employed bank statement mortgage loan, and you’ll need just a 620 in order to qualify. If you fall below this threshold, increasing your score is as easy as paying your bills on time, increasing your income slightly, or paying off a portion of your debts. Notifying the three major credit bureaus of any errors on your credit report can also help. 

A great formula to keep in mind is: the higher the credit score, the lower the interest rate.  

The Bottom Line: Self-Employed Pros CAN Buy a Home (And It’s Not Hard, Either!)

Self-employed pros can have a particularly hard time buying a home — especially with home costs on the rise. But with bank statement loans, it’s no longer so difficult.

Are you looking to take advantage of a Self-Employed Bank Statement Loan?

The first step is pre-approval, know your options. Contact HomeLife Mortgage to learn more or apply for our Fast-Qual (48-hour pre-approval) now.

Ready to Get Started?

If you’re a self-employed homeowner, there’s never been a better time to refinance.  At HomeLife Mortgage, we are here to help. Our bank statement loans are simple, offer high balances, require no private mortgage and come with no pre-payment penalties whatsoever. Download our ebook, Ultimate Guide for Self-Employed Bank Statement Mortgages, or contact us to discover how much you could save by refinancing.


More Posts for You:

Self-Employed Home Loans: Now Is the Time to Refinance

Rates for Bank Statement Mortgage Loans for Refinancing

Bank Statement Mortgage Loans for Refinancing: What Are the Rates?


Click the live chat window on our site or call (888) 677-2526.  Our team is ready to assist you!

About HomeLife Mortgage

For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing.  HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Non-Prime Loans, Real Estate Investor Loans and Bank Statement Loans.

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