Self-Employed Home Loan Solutions – for Business Owners and Independent Contractors
Self-Employed Home Loans: Smarter Solutions for Entrepreneurs and Investors
If you're self-employed, you already know what it means to bet on yourself. But when it comes to qualifying for a mortgage, traditional lending guidelines don't always fit the way you run your business or build wealth.
At First Capital Mortgage Inc., we specialize in helping self-employed professionals, business owners, and investors get the financing they need - without the runaround.
Why Getting a Home Loan Can Be Challenging When You're Self-Employed
Traditional loans typically require:
- Two years of tax returns showing solid net income
- A debt-to-income (DTI) ratio under 43%
- Verifiable, consistent income
But for many entrepreneurs, income is variable, write-offs are high, and net income on paper doesn't reflect your actual cash flow. That's where alternative loan strategies come in.
💼 Loan Options Designed for the Self-Employed
📊 P&L-Only Loans
This type of mortgage uses just your profit and loss statements - no tax returns required.
Perfect for:
- Self-employed borrowers with substantial business revenue
- Applicants with large deductions or aggressive write-offs
- Sole proprietors or LLCs
You provide:
- A year-to-date profit and loss statement (self-prepared in some cases; CPA or licensed tax preparer may be required by certain lenders)
- 3 - 6 months’ business bank statements (optional with some partners)
Why it works: You’re qualified based on actual business performance, not tax-time deductions.
🧾 Bank Statement Loans
This loan type uses 12 - 24 months of bank deposits (business or personal) to calculate income.
Perfect for:
- Freelancers, gig workers, and independent contractors
- Real estate agents, consultants, and small business owners
No W-2s. No tax returns. No problem. We look at what you earn and deposit, not just what's reported to the IRS.
🏢 DSCR Loans (Debt-Service Coverage Ratio)
DSCR stands for Debt-Service Coverage Ratio, and this loan isn't based on your personal income at all.
Perfect for:
- Real estate investors buying rental properties
- LLCs and corporations acquiring income-producing real estate
- Clients looking to scale their portfolio
How it works: We qualify the loan based on the cash flow of the property, not your job or your tax returns.
If the rent covers the mortgage (typically DSCR ≥ 1.0), you’re good to go.
🏢 Fix and Flip or Fix and Hold – Loans
DSCR stands for Debt-Service Coverage Ratio, and this loan isn't based on your personal income at all.
Perfect for:
- Real estate investors buying rental properties
- LLCs and corporations acquiring distressed property
- Contractors who want to do their own projects
- Clients looking to scale their portfolio
How it works: We appraise the home based on finished value, we qualify you based on your experience and financial strength. Financing up to 95% LTV of finished value.
🔑 What Lenders Want to See
No matter the loan type, here's what helps your approval:
- Credit (typically 660+ for Non-QM loans)
- Healthy reserves (2 - 6 months of mortgage payments) more is better.
- A solid property that fits the loan guidelines
👥 Work with a Lender Who Gets It
Most lenders see self-employed clients as "complicated." We see you as savvy and resourceful.
At First Capital Mortgage Inc., we'll take the time to:
- Understand your goals (and coordinate with your agent)
- Recommend the best-fit loan for your situation
- Guide you with less paperwork, more clarity, and real solutions
Let's Talk About Your Options
Whether you're buying a home, growing your portfolio, or refinancing for better terms, we offer creative, flexible loan solutions that work for your unique income.
📞 Schedule a strategy session here
🙋♂️ One Last Thing…
When your friends, family, or co-workers are looking to buy, sell, or refinance, can I count on you to introduce us via text or email? A simple connection can make a big impact - and it means the world to us.
Make it a Successful Week,
Steve McNeal
📞 209-522-7100
📨 Steve@FirstCapitalMortgageInc.com
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🔗 Schedule a Strategy Call