Before going to start the debate about what choices are available for self-employed buyers, you have to understand what a mortgage is.

What Is Mortgage?

A mortgage is a loan from a bank or other financial institution that helps a borrower to purchase a home. The security for the mortgage is the home itself, meaning that if the borrower does not make monthly payments to the lender and defaults on the loan, the lender can sell the home and recoup its money. That actually the mortgage is.

What Are The Mortgage Choices Available For Self Employed Buyers?

The best mortgage choices available for self-employed buyers today are bank statement loans. This program was introduced specifically to help those who have the challenges of qualifying based upon the net income on their tax returns. The best real estate agent in California like Izabella Lipetski can help you buying a new home or get on rent.

Rather than using tax returns, lenders will require you to provide anywhere from 12-24 months of bank statement deposits as proof of income.

How Does A Mortgage Work?

Mortgage are depending on two things the principal and interest.

The principal is the specific amount of money that the homebuyer borrows from a lender to purchase a home. If you buy a $100,000 home, for instance, and borrow all $100,000 from a lender, that is the principal owed.

The interest is what the lender charges you to borrow that money. In other words, the interest is the cost you pay for borrowing the principal. Borrowers pay a mortgage back at regular intervals, usually in the form of a monthly payment, which typically consists of both principal and interest charges.

If you are looking for the best real estate agent in California, you are already at the right place. Izabella Lipetski is providing the best real estate agent services in California to get your new home through mortgage in your desired vicinity. She can let you understand how bank will use a percentage of the average monthly deposits of your business accounts, and 100% of the deposits into your personal accounts to use as your monthly income. Your bank statement loan requirement is:

Bank Statement Loan Requirements

  • You must be self-employed for a minimum of 2 years.
  • Credit scores can be in the mid 500’s depending upon the lender, but that may change your down payment requirement.
  • You will need to provide 12-24 months of bank statements (all pages).
  • The down payment requirement will be anywhere from 10%-20% depending upon the lender, your credit score, and whether you had a recent bankruptcy.
  • Available for primary residences, second homes and investments.

Pros and Cons of a Bank Statement Loan

Pros of Bank Statement Loans

  • Low down payment requirement
  • No tax returns are needed for qualification
  • Low credit scores are permitted
  • Recent bankruptcies are permitted
  • You can qualify even if your business is showing a loss
  • No PMI for LTVs over 80%

Cons of Bank Statement Loans

  • Interest rates are a little higher than conventional loans
  • You will need to show a steady flow of bank deposits
  • Not available to salaried borrowers
  • Not many lenders offer this program

The bank statement loan is by far the best mortgage program available for self-employed buyers due to the combination of limited mortgage documentation needed and competitive rates.


At the end of the day, my job as a best real estate agent in California is to find out the best place with the right price. Your lender can provide you the investment you need for your home while you are buying a house from mortgage. Therefore, you have to be careful and only choose an experienced real estate agent like Izabella Lipetski. She is known to be the best real estate agent in California and she is here to help you find the home you desire at an easy to handle mortgage choice.

Contact Izabella Lipetski right away or check out her recent listings.