High-net-worth, self-employed borrowers often have difficulty obtaining mortgage financing. Being self-employed has its advantages and disadvantages. In this case, our self-employed borrowers have difficulty obtaining conventional financing, which carries cheaper rates. Still, our non-QM loan programs help these types of borrowers get the financing they need. It might be a quarter higher on the rate, but the programs exist.
Scenario Overview
Our borrower is a successful self-employed interior designer working in the luxury home market. Her spouse is a freelance photographer. Together, they have built a thriving business and maintain a strong financial profile, including a 773 credit score and significant liquidity.
They recently sold their home and entered into a contract on a luxury property, seeking a $4.4 million loan. Despite their financial strength, they were declined by conventional lenders. The issue was not credit, assets, or down payment. It was their tax returns.
Like many self-employed borrowers, their CPA strategically minimized taxable income. While beneficial for tax purposes, this created a high debt-to-income ratio under conventional underwriting standards, making them ineligible for a jumbo loan.
The Non-QM Solution
This is where our Non-QM Super Jumbo Bank Statement program made the difference. Instead of relying on tax returns, we evaluated the borrower’s actual cash flow using 12 months of bank statements. Their accounts showed consistent, strong deposits, accurately reflecting a healthy and growing business. By focusing on real income rather than reported income, we structured a loan that matched the borrower’s true financial capacity. With a 35% down payment, resulting in a 65% loan-to-value, strong post-closing reserves, and excellent credit, this became a well-qualified, low-risk transaction that conventional underwriting failed to recognize.
Program Highlights
- Loan amounts from $3.5 million to $5.0 million
- 12-month personal or business bank statement option
- Minimum 680 FICO
- Up to 75% LTV for purchases
- Up to 65% LTV for refinances
- Maximum 35% DTI
- Primary residence eligible
Self-employed borrowers in high-income professions, such as designers, consultants, entrepreneurs, and creatives, often report lower income on their tax returns due to legitimate deductions. Conventional Jumbo financing does not account for this reality, leading to unnecessary denials. Our Non-QM Jumbo Bank Statement program bridges that gap by recognizing true earning power through documented cash flow.
If you’re a self-employed borrower seeking jumbo or super jumbo financing, we have the loan programs to help you purchase or refinance a property.
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