Jumbo Mortgage for the Self-Employed

Mortgage and Lending with Guaranteed Rate, Marin County, CA NMLS: 22343

Jumbo Mortgage for the Self-Employed


One thing of which our industry does a terrible job is promoting a sense of optimism among the self-employed.  Whether the one-man-band sole proprietor, or the complex, greater-than-25% owner of a multi-million dollar S-Corp, this long-suffering subset of the borrowing population has traditionally experienced stiff headwind in the mortgage process because the objectives of running one's own business frequently fly in the face of what it takes to qualify for a jumbo mortgage.  There are a combination of reasons why this has been the case and we're going to look at those here, along with what the self-employed borrower and business owner can do to stack the deck in his/her favor when it comes to qualifying for any mortgage, but especially one that exceeds the conforming and FHA loan limits.


Choose Your Lender Wisely

I realize the temptation to seek a mortgage at the institution where you have your business checking account may be great, but don't let convenience trump expertise.  As an industry insider, I can tell you right now that I have known MANY colleagues who cannot decipher a business tax return.  Simply, you very well could find yourself working with a mortgage loan originator who does not know how to accurately calculate your income and give you the benefit of every qualifiable dollar.  Of course, many of the self-employed write off as many expenses as possible in an effort to limit their tax exposure.  But beyond this truth, loan officers who do not know how to distinguish between sole proprietorships, partnerships, S-corps and corporations and the documents each require are definitely going to struggle to give the buyer/borrower the benefit of the qualifying doubt.  This becomes even more evident when jumbo mortgage financing is at stake because here, nuances in how income is qualified will be investor specific and often single-entity retail banks will not have the flexibility to qualify the maximum percentage of all buyers --- their guidelines simply do not accommodate enough scenarios.  Inexperienced, uninformed and even lazy loan officers can work at some of the largest banks in the nation.  Don't let the name and the convenience of your checking account's home fool you.


Understand the Alternatives

At the end of the long, hard workday, some of the self-employed may simply have a really tough profile, one that doesn't fit neatly into the standard credit box.  For them, a loan originator needs to be well-versed in programs that perhaps allow bank statement or asset-backed qualifying parameters.  While these are not the stated income loans of yesteryear, some of them compare very favorably to "A paper" options and often we find that these loans are a viable alternative.  Once we stop trying to put a square peg into a round hole, the self employed borrower begins to realize how much more in-step these programs are with the way they actually run their business.  For some of these options, no tax returns are required.  And for a partner who may have many K-1 forms, you can imagine the relief they sense when we actually make the documentation process easier rather than the opposite.


Running a business is challenging enough for the self-employed owner.  Getting a mortgage should not be equally as difficult and understanding the lending environment goes a long way towards fostering success.  As a mortgage lender who is fluent in self-employed business entity types, and who has access to an independent mortgage banking platform that provides many options to the business owner, I want business owners to know that they should indeed be optimistic when they go to qualify for a home loan.  Loan agents like me are out there and we want to help.  Let me know if I can be of service today.


Takin' what they're givin', 



Robert J. Spinosa
Vice President of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate's Human Resources Department.


Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood ChicagoIL 60613 - (866) 934-7283


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Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good morning 

Thank you for sharing your information Rob Spinosa 

Have a great day.

February 14, 2019. 

Feb 14, 2019 07:50 AM #1
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Anyone thinking of buying a home in your area should first talk to you about a mortgage 

Feb 14, 2019 09:03 AM #2
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Rob good information to share.

Hope today was a very special Valentine's Day for you!!!

Feb 14, 2019 03:30 PM #3
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Most self employed BO's experience difficulties securing jumbo mortgage loans yet, it's not impossible, if as you stated, they employ a knowledgeable and experienced mortgage broker. Sometimes, delaying a purchase is the solution while adjusting cash flows and financial records that are necessary to meet the criteria for mortgage qualifications. Planning early is essential if your MAGI doesn't support your mortgage DTI and other factors to secure a loan. Great post.

Feb 14, 2019 09:26 PM #4
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Nice of you to reach out with a message of encouragement to sole proprietors. 

Feb 16, 2019 06:11 PM #5
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Rob Spinosa

Vice President of Mortgage Lending, Marin County
Can I Get a Jumbo Loan with 10% Down?
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