A Thorough Look Into The Best Self-Employed Mortgage Lenders
Getting qualified for a mortgage can feel like a daunting process, but for someone who’s self-employed, it can feel impossible. With traditional lenders often relying on W2s, pay stubs, and tax returns to verify income, it leaves self-employed individuals struggling to prove their financial stability. What you may not know is that there are plenty of loan options that were created with the self-employed in mind. Just because you decided to forge your own path, doesn’t mean you should be penalized for it.
In this guide, we’ll be showcasing lenders who understand the unique income structures of the self-employed and who can help you achieve your homeownership goals.
What is a Self-Employed Mortgage?
Simply put, a self-employed mortgage is a type of mortgage that caters specifically to individuals who are self-employed, freelancers, entrepreneurs, or anyone that has an irregular or non-traditional source of income. Since it can be challenging for self-employed individuals to meet standard mortgage qualification criteria, these mortgages offer an alternative solution by considering a larger range of income documentation. This could include bank statements, profit and loss statements, business financials, and even the property’s rental income. Lenders use these alternative documents in place of traditional income documents to determine the borrower’s ability to repay the loan.
All in all, self-employed mortgages open up the door to homeownership for self-employed individuals by giving them access to the same opportunities as traditionally employed people in the housing market.
Who Could Benefit From a Self-Employed Mortgage?
Anyone who has an irregular or non-traditional source of income could benefit from a self-employed mortgage to achieve their homeownership goals. This includes, but is not limited to:
- Self-employed Individuals
- Freelancers
- Gig Workers
- Small Business Owners
- E-Commerce Professionals
- Independent Contractors
- Real Estate Investors
- Artists
- Doctors in Private Practice
- Self-Employed Lawyers
- Individuals With Multiple Streams of Income
- Truck Drivers
- Individuals with unique circumstances who would not be able to qualify for a traditional mortgage
How Was This List Formed?
This list was formed by considering several factors to help determine who the best self-employed mortgage lenders are in the industry, including the experience of employees, good reviews, rate transparency, awards, overall brand message, and more. Please note that this list is in no particular order.
The Top 15 Self-Employed Mortgage Lenders of 2024
1. North American Savings Bank
Located in Kansas City, Missouri, North American Savings Bank (NASB) is a full-service bank offering a variety of mortgage products. They offer a wide variety of mortgages and refinancing options, including conventional, FHA, VA, and non-QM loans. For their self-employed mortgage loans, they list the following as some of the benefits:
- Down payments as low as 10%
- Maximum loan amount of up to $1,250,000
- 680 minimum credit score; $175,000 minimum loan amount*
In terms of loan options for self-employed individuals, NASB offers:
- Bank Statement Loans
- 1099 Mortgage Loans
- Asset Depletion Mortgage
- DSCR Loans
- Investment Property Loans
- FLEX Loans
- Non-Conforming Loans
As one of the leading national mortgage lenders in the country, NASB prides themselves on taking the time to understand the needs and goals of their customers before coming up with solutions.
2. Truss Financial
Truss Financial Group is a California-based mortgage company founded by Jeff Miller in 2006. Truss Financial Group’s main focus is in making homeownership a reality for those with unique income situations like business owners and real estate investors. In 2023, they ranked #9 for total volume in the non-QM space, according to Scotsman Guide.
Truss Financial has a wide range of non-QM loans that are tailored to the unique circumstances of self-employed borrowers, such as:
- Stated Income Mortgages
- Bank Statement Mortgages
- Debt Service Coverage Ratio (DSCR) Mortgages
- Asset Depletion Mortgages
- No Doc Mortgages
- Fix-and Flip Loans
Relying on their strong relationships with their funding partners, Truss Financial Group is able to direct their efforts toward meeting the unique needs of self-employed borrowers. Borrowers with alternative income sources or limited documentation can explore options such as debt service coverage ratio loans, home equity lines of credit, bank statement mortgages, and more. If you’re buying your first home, refinancing a rental property, or looking to unlock equity without affecting your existing mortgage rate, they’ll have options available to almost all consumers.
3. Angel Oak Mortgage Solutions
Angel Oak Mortgage Solutions is a full-service lender committed to financial accessibility, including self-employed mortgages. Their diverse lending portfolio includes traditional and non-QM options that cater to a wide range of borrowers. These options include:
- Bank Statement Loans (with the option of Bank Statement Elite)
- DSCR Loans
- Bank Statement HELOCs
- 1099 Income Loans
- Profit & Loss (P&L) Loans
- Asset Qualifier
- ITIN Mortgage Loans
- Foreign National Loans
- Other specialty programs such as: Closed End Second Mortgages, Platinum Jumbo, Portfolio Select, and Agency Mortgages
When you take out a bank statement loan with Angel Oak Mortgage Solutions, borrowers do not have to own 100% of the business. Additionally, some of their stated benefits include:
- Loans up to $3 million with a minimum of $150,000
- 12 or 24 months business or personal bank statements
- Owner-occupied, second homes, and non-owner occupied
- 40 year interest only available
- Non-permanent residents allowed
However, borrowers must wait at least two years after a foreclosure, short sale, bankruptcy, or deed in lieu of foreclosure. Also, borrowers need to have been self-employed for at least one year before applying.
4. New American Funding
Established in California nearly 20 years ago, New American Funding has grown into a leading private direct mortgage lender nationwide. New American Funding promotes diversity and inclusion through initiatives aimed at empowering underserved communities, including Latino and Black homeownership programs. They prioritize technological innovation to streamline their lending process. This focus contributes to their achievement of industry-leading loan closing times, including a 14-business day loan-close guarantee.
For self-employed borrowers, they have several loan options such as a 12-month bank statement program, an asset qualifier, and a one-year tax return program. Their requirements include:
- Minimum self-employment history of at least two years, which is a little higher than the industry average.
- A tax return requirement for at least the previous year.
- Business tax returns for the same year.
- A signed and dated Profit and Loss statement for 90 days
- Business bank statements for 90 days with all pages
With their focus on diversity, New American Funding offers a wide range of self-employed mortgage options and a timely closing process that allows Americans of all backgrounds to achieve their dream of homeownership.
5. CrossCountry Mortgage
Established in 2003, CrossCountry Mortgage was armed with the goal of becoming a full-service lender providing transparent and quick mortgage experiences to customers from coast to coast. Today, CrossCountry Mortgage has been ranked #7 on Scotsman Guide’s 2023 Top Overall Lenders list. Thanks to their exceptional customer service and wide range of loan programs and products, CrossCountry Mortgage has grown into a company with over 600 branches that service their clients in all 50 US states.
While they offer standard mortgage types, CrossCountry Mortgage also offers specialty loan programs for self-employed individuals. Their specialty loan programs include:
- Bank Statement Loans
- Asset Qualifier Mortgages
- Full Doc Loans
- Investor Cash Flow Loans
- Alt Doc – 1099 Mortgage Programs
In terms of documents required for their self-employed mortgages, at minimum, you would need:
- Personal and business federal tax returns for the past three years
- A year-to-date profit and loss statement
- A complete list of all business debts
With five different loan types to choose from, there’s a good chance that one of them might work for you.
6. Griffin Funding
Founded in 2013 in San Diego, California, Griffin Funding is a direct lender that solely operates online. Despite offering a wide variety of loan products for both traditional and non-traditional borrowers, Griffin Funding primarily focuses on veterans, self-employed individuals, and real estate investors. From conventional and FHA loans to bank statement and DSCR loans, Griffin Funding has an alternative mortgage option for everyone. Beyond mortgages, Griffin Funding is proud to support Shelter to Soldier, which is a non-profit organization dedicated to rescuing shelter dogs and training them to be veteran service companions.
Realizing that not all self-employed individuals are alike, Griffin Funding has many non-QM options to suit the needs of many different types of borrowers. These options include:
- Bank Statement Loans
- Profit & Loss (P&L) Loans
- DSCR Loans
- Foreign National Loans (including ITIN Mortgages)
- Asset-Based Loans
- Interest-Only Loans
Proudly serving 27 states across the US, Griffin Funding has helped borrowers across the country achieve their homeownership goals.
7. Defy Mortgage
Defy Mortgage is a rising star of the non-QM mortgage industry and was founded with a mission to elevate the mortgage experience for non-traditional borrowers. Defy’s CEO, Todd Orlando, is an experienced banker who isn’t afraid of challenging the status quo in the financial services industry. Recognizing that the number of self-employed individuals is at an all-time high, Defy is dedicated to specializing in non-QM loans to help non-traditional borrowers achieve their American dream of homeownership. They also realize that self-employed individuals come in many different forms – real estate investors, gig workers, retirees, and more – resulting in a wide variety of creative loan solutions to fit every borrower’s needs.
When it comes to their self-employed mortgage options, Defy offers:
- Bank Statement Loans
- Profit & Loss (P&L) Loans
- DSCR Loans
- Fix-and-Flip Loans
- Construction Loans
- Asset Depletion Loans
- Interest-Only Loans
Since 2023 Defy has been empowering dreams and enriching lives by providing alternative mortgage solutions and they have no plans of slowing down. When others say no, Defy says yes.
8. Deephaven Mortgage
Deephaven Mortgage was founded in 2012 with the goal of providing mortgages to Americans who are unable to qualify for a traditional loan. They are a wholesale non-QM lender that offers their loans through a network of over 1,000 independent mortgage brokers. Despite being a non-QM lender, they prefer to call themselves a “pro-borrower” mortgage lender. Deephaven prides themselves on using ingenuity and common sense to evaluate borrowers rather than a strict and narrow set of criteria to put homeownership within reach for millions of borrowers.
Deephaven’s lending programs for self-employed individuals include:
- Expanded-Prime
- Non-Prime
- DSCR Loans
- Equity Advantage
With an initial underwriting timeline of two to three business days and an underwriting condition review only taking 24 to 48 hours, Deephaven Mortgage can help you close on your dream property even faster.
9. First National Bank of America
First National Bank of America (FNBA) was established over 65 years ago and has since been dedicated to providing their expertise and knowledge to their customers, thereby prioritizing their financial needs. FNBA’s commitment to providing exceptional service sets them apart from other financial institutions. As a nationally chartered full-service bank, FNBA offers several other retail and business banking products on top of their alternative mortgage options, allowing their clients to bank all in one place.
Their non-QM loan programs offer an alternative mortgage solution for borrowers nationwide who:
- Are self-employed
- Hold an ITIN
- Have had a previous credit event
Unlike traditional loans, FNBA allows you to qualify for their non-QM loans using alternative income documentation to prove 12 months of income history including:
- Profit and loss statements only
- Bank statements (personal or business)
- Seasoned assets
FNBA recognizes that purchasing a home is likely to be someone’s biggest investment in life and that mortgage lending shouldn’t be a one-size-fits-all approach.
10. Carrington Mortgage
Founded in 2007 as a subsidiary of Carrington Holding Company, LLC, Carrington Mortgage was created to provide a wide range of single-family residential real estate services across the US. Headquartered in California, Carrington Mortgage is a licensed lender in 48 US states, but services loans in all 50 states and Puerto Rico. Their mission is straightforward: To enable a lifetime of simple and attainable homeownership. Combined with their guiding principles, which are their responsibilities to their customers, to each other, and to their key stakeholders, they act with the highest level of integrity that contributes to their success.
When it comes to their loan options, Carrington offers both standard mortgage and alternative self-employed mortgage options. Their standard mortgages include conventional, FHA, USDA, and VA loans. Pivoting to their self-employed mortgages, Carrington offers several options under their “Carrington Flexible Advantage” loan umbrella, including:
- Flexible Advantage Loans
- Flexible Advantage Plus Loans
- Carrington Prime Advantage Loans
- Adjustable-Rate Mortgages
Depending on your situation, Carrington’s Loan Officers can help you choose the right option for you. They take into consideration your credit history, income documentation, debt-to-income ratio, and the property type when evaluating your eligibility.
11. Acra Lending
Acra Lending operates in 39 states and DC by providing their programs and services through consumer direct lending, wholesale lending, investor lending, and correspondent lending. Acra Lending aims to help their clients achieve their homeownership and investment goals by specializing in alternative income products, such as bank statement and asset depletion loans. Because of the wide variety of lending they do, Acra Lending offers mortgage solutions for borrowers who are interested in both residential and commercial properties.
For those who don’t have traditional income, Acra has several self-employed mortgage options, including:
- 12-Month Bank Statement Loans
- ATR-in-Full Loans
- Business Purpose Loans
- DSCR Loans
- Investor Loans
- 1099 Only Loans
- P&L Programs
Acra Lending prides themselves on their responsible lending practices and product innovation, all while creating tailor-made non-QM products to serve a wide variety of borrowers.
12. A&D Mortgage
Initially founded in 2005 as a retail lender only operating in Florida, A&D Mortgage is a direct lender that is committed to bringing first-class service to their partners. Despite going through the 2008 financial crisis, A&D Mortgage persevered and eventually pivoted their business to becoming a wholesale non-QM lender in 2015. At that time, the new and up-and-coming market for alternative mortgage options was just beginning to develop and A&D Mortgage wanted to be one of the first to help underserved borrowers. Fast forward to today, A&D Mortgage has become one of the leaders in the mortgage market with over 6,000 brokerage companies.
A&D Mortgage offers both standard and alternative self-employed mortgage programs to suit every type of borrower. Their self-employed mortgage options include:
- DSCR Loans
- 12 or 24 Months Bank Statement Loans
- 1 or 2 Year Profit & Loss (P&L) Loans
- 1099 Loans
- Asset Utilization Loans
- Foreign National DSCR Loans
Boasting the fastest turnaround times in the industry combined with flexibility and competitive rates, A&D Mortgage is a solid choice for self-employed mortgages.
13. Guaranteed Rate
Founded 22 years ago, Guaranteed Rate has continuously operated with the mission of prioritizing their customers. Always at the forefront of Guaranteed Rate’s business was their commitment to going above and beyond when serving their customers. They seem to be achieving their goal and their customers seem to agree, with 97% of them stating they would refer Guaranteed Rate to their friends and families. But it doesn’t stop there. To further satisfy their customers, Guaranteed Rate has created and implemented a “Proactive Mortgage Pod” model. This method allows each of their loan officers to have his or her own team of highly-trained specialists to make the loan process even faster.
Although their website showcases a wide range of standard mortgage types, Guaranteed Rate offers specialty loans as well that cater to self-employed individuals, investors, house flippers, and more. While their website doesn’t mention very many specific alternative mortgage options for self-employed individuals, they have non-QM loans and bank statement loans, as well as stating they have programs to support all kinds of homeownership needs.
Guaranteed Rate is committed to making the mortgage process as easy and seamless as possible with their combination of excellent customer service and low rates.
14. Change Home Mortgage
Change Home Mortgage is headquartered in Anaheim, California with the mission of providing financing solutions to all of America’s diverse homeowners and communities. As a testament to their commitment, Change Home Mortgage received a unique legal designation as a Community Development Financial Institution (CDFI). A CDFI refers to a financial institution that promotes financial inclusion and economic development in disadvantaged communities. It is a government-funded program, which means that Change Home Mortgage receives federal funding from the US Treasury Department that allows them to provide even more opportunities for low-income borrowers. With the help of this program, they’ve been able to lend over $25 billion to more than 75,000 families of which over 70% have been Black, Latino, and low- to moderate-income borrowers.
Change Home Mortgage offers several options when it comes to self-employed mortgages, such as:
- Community Mortgages
- Investor Programs
- Alt-Doc Programs
Beyond the options for self-employed individuals, they also offer other alternative financing options for foreign nationals and for those who need short-term financing or who struggle to meet conventional loan requirements.
For self-employed individuals looking for a lender that understands your unique situation, Change Home Mortgage has options to help you achieve your home-buying goals.
15. United Wholesale Mortgage
United Wholesale Mortgage (UWM) is a wholesale lender that has claimed the title of #1 overall mortgage lender and purchase lender in the country for the past eight consecutive years. UWM’s mission is to make the mortgage process as seamless as possible for their broker partners, so they can pass on an exceptional customer experience to their borrowers. How do they do this? UWM gives their broker partners direct access to an in-house account executive, allowing them to close on an average of 17 days from start to finish. This turnaround time is over twice as fast as the industry average of 43 days.
While they only have bank statement loans and DSCR loans for self-employed borrowers and real estate investors, UWM offers four different loan options under each umbrella. These options have different eligibility requirements and loan terms and are represented by different colors – blue, yellow, pink, and orange. Despite having seemingly fewer self-employed mortgages, there’s still a rather wide variety of loan options to choose from when you consider the four options under each of the two umbrellas.
As the nation’s #1 lender, UWM promises personalized and quick service to resolve any issues in a matter of minutes rather than days.
