Best Lenders for Self-Employed in California 2025
Compare the top 10 mortgage lenders for self-employed borrowers in California. No tax returns required. Get approved with bank statements, 1099s, or DSCR loans.
Quick Comparison: Top 10 Lenders
| Lender | Min Credit | Down Payment | Best For |
|---|---|---|---|
| Capital Bridge Solutions | 640 | 20% | Investment Properties & DSCR Loans |
| Griffin Funding | 620 | 10-20% | Bank Statement Loans & Primary Residences |
| Angel Oak Mortgage Solutions | 620 | 15-20% | Non-QM Variety & HELOCs |
| CrossCountry Mortgage | 580 | 20-25% | Bad Credit & Credit Challenges |
| New American Funding | 620 | 15-20% | Online Experience & Technology |
| Guild Mortgage | 640 | 10-20% | Multiple Loan Options |
| First National Bank of America (FNBA) | 620 | 15-25% | High Debt-to-Income Ratios |
| AD Mortgage | 640 | 20% | Quick Closings & Speed |
| Visio Lending | 660 | 20-25% | Real Estate Investors |
| Lima One Capital | 660 | 20-25% | Fix & Flip Projects |
As a self-employed professional in California, you've likely discovered that getting a mortgage isn't as straightforward as it is for W-2 employees. Traditional lenders often struggle to understand your income, especially when legitimate business deductions reduce your taxable income. The good news? Specialized lenders now offer mortgage programs designed specifically for self-employed borrowers—no tax returns required.
This comprehensive guide compares the top 10 mortgage lenders for self-employed borrowers in California, covering bank statement loans, DSCR loans, asset-based loans, and other non-QM options. Whether you're a freelancer, business owner, contractor, or gig worker, you'll find the right lender for your situation.
Key Takeaways
- No tax returns required: Bank statement loans and DSCR loans qualify you based on deposits or rental income
- Credit scores from 580: Bad credit options available with larger down payments
- Down payments 10-25%: Lower than you might expect for self-employed borrowers
- California specialists: Lenders who understand CA's unique market and high property values
- Fast approval: 24-48 hour pre-approvals, 10-15 day closings possible
Top 10 Lenders for Self-Employed in California
1. Capital Bridge Solutions
Best for: Investment Properties & DSCR Loans
Capital Bridge Solutions specializes in DSCR (Debt Service Coverage Ratio) loans, perfect for self-employed real estate investors in California. No tax returns, W-2s, or pay stubs required—you qualify based on the property's rental income alone.
Their unique advantage is deep California market knowledge, with headquarters in Orange County. They understand CA's high property values and can close loans from $75K to $3M in just 10-15 days. They also offer a free Chrome extension that analyzes properties on Zillow, Redfin, and 17+ sites—showing DSCR ratios and cash flow instantly.
✅ Pros
- • No tax returns or income verification
- • Rates from 5.99% (best in class)
- • Close in LLC for liability protection
- • Unlimited properties (no portfolio cap)
- • Free Chrome extension tool
- • California market expertise
- • 10-15 day closings
❌ Cons
- • Investment properties only (no primary residence)
- • 20% down payment minimum
- • Focus on rental properties vs owner-occupied
2. Griffin Funding
Best for: Bank Statement Loans & Primary Residences
Griffin Funding is a California-based lender specializing in bank statement loans for self-employed borrowers. They analyze 12-24 months of bank deposits to determine your income, making them ideal for business owners whose tax returns don't reflect their true earning power.
They offer both personal and business bank statement programs, and can work with borrowers who have been self-employed for less than 2 years if you have strong credit and reserves. Griffin also offers conventional, FHA, VA, and jumbo loans if you qualify.
✅ Pros
- • Bank statement loans (12-24 months)
- • Down payments from 10%
- • Primary residence options
- • California-based and licensed
- • Multiple loan types available
- • Strong customer service
❌ Cons
- • Higher rates than DSCR loans
- • Still requires 2 years self-employment (usually)
- • More documentation than DSCR
3. Angel Oak Mortgage Solutions
Best for: Non-QM Variety & HELOCs
Angel Oak offers one of the widest ranges of non-QM loan products for self-employed borrowers. They specialize in bank statement loans, asset-based loans, DSCR loans, P&L loans, and even HELOCs for self-employed homeowners.
Their California presence is strong, and they understand the state's diverse property types and price ranges. Angel Oak is particularly good for borrowers with complex income situations—multiple businesses, seasonal income, or those transitioning between employment types.
✅ Pros
- • Wide variety of non-QM products
- • HELOCs for self-employed
- • Asset-based loan options
- • P&L statement programs
- • Complex income situations
- • Strong California presence
❌ Cons
- • Rates slightly higher than competitors
- • Can be slower to close
- • More stringent documentation for some programs
4. CrossCountry Mortgage
Best for: Bad Credit & Credit Challenges
CrossCountry Mortgage stands out for accepting self-employed borrowers with credit scores as low as 580. If you've had credit challenges, late payments, or are rebuilding your credit, they offer solutions when others won't.
They understand that self-employment can lead to income fluctuations that affect credit. With larger down payments (20-25%), they can approve borrowers that traditional lenders reject. They're particularly strong in California's competitive market.
✅ Pros
- • Credit scores from 580
- • Bad credit specialists
- • Recent credit events accepted
- • Flexible underwriting
- • California experience
- • Multiple non-QM options
❌ Cons
- • Higher interest rates (7%+)
- • Larger down payments required
- • More expensive overall
5. New American Funding
Best for: Online Experience & Technology
New American Funding offers the best digital experience for self-employed borrowers. Their online platform makes it easy to upload documents, track your application, and communicate with your loan officer 24/7.
Based in California, they understand the local market and offer bank statement loans, asset-based loans, and DSCR products. Their technology streamlines the process while maintaining personalized service.
✅ Pros
- • Excellent online platform
- • 24/7 application tracking
- • Digital document upload
- • California-based
- • Fast pre-approvals
- • Good customer reviews
❌ Cons
- • Rates slightly higher than some competitors
- • Less flexible on credit scores
- • May require more documentation
6. Guild Mortgage
Best for: Multiple Loan Options
Guild Mortgage offers an extensive menu of loan products for self-employed borrowers, from conventional to non-QM. They can often find a solution even if you don't fit the typical self-employed profile.
With strong California operations, they understand the state's unique lending environment. Guild is particularly good at matching borrowers to the right loan type based on their specific situation.
✅ Pros
- • Wide range of loan types
- • Conventional and non-QM options
- • Strong California presence
- • Experienced loan officers
- • Competitive rates
- • Good for complex situations
❌ Cons
- • Can be slower to close
- • Underwriting can be strict
- • May require more documentation
7. First National Bank of America (FNBA)
Best for: High Debt-to-Income Ratios
FNBA specializes in helping self-employed borrowers with high debt-to-income ratios. If you have significant business debt or personal obligations, they can often approve loans that others can't.
Their non-QM programs are designed for self-employed professionals with complex financial situations. They're particularly strong with bank statement loans and asset-based lending.
✅ Pros
- • High DTI ratios accepted (up to 50%)
- • Flexible underwriting
- • Bank statement programs
- • Asset-based options
- • Business debt understanding
- • California licensed
❌ Cons
- • Higher rates for high DTI
- • Larger down payments may be required
- • Slower processing times
8. AD Mortgage
Best for: Quick Closings & Speed
AD Mortgage is known for fast closings on non-QM loans. If you need to close quickly on a California property, they can often complete the process in 10-14 days.
They specialize in DSCR loans and bank statement loans for self-employed investors. Their streamlined process and experienced underwriters make them ideal when time is critical.
✅ Pros
- • 10-14 day closings possible
- • Streamlined process
- • DSCR loan specialists
- • Experienced underwriters
- • Good communication
- • California focus
❌ Cons
- • Limited loan variety
- • 20% down minimum
- • May have higher fees for speed
9. Visio Lending
Best for: Real Estate Investors
Visio Lending focuses exclusively on real estate investors, making them ideal for self-employed investors building California portfolios. They offer DSCR loans with no income verification.
They understand investor strategies and can finance unlimited properties. Their expertise in California's investment markets makes them a strong choice for serious investors.
✅ Pros
- • Investor-focused
- • Unlimited properties
- • DSCR specialists
- • No income verification
- • Portfolio lending
- • California expertise
❌ Cons
- • Investment properties only
- • Higher credit score requirements
- • 20-25% down required
10. Lima One Capital
Best for: Fix & Flip Projects
Lima One Capital specializes in fix-and-flip financing for self-employed investors. If you're renovating properties in California, they offer both acquisition and renovation financing.
They understand the unique needs of property flippers and offer flexible terms. They can also provide DSCR loans for completed rental properties.
✅ Pros
- • Fix & flip specialists
- • Renovation financing
- • Fast approvals
- • Experienced with investors
- • California active
- • Bridge loan options
❌ Cons
- • Higher rates for fix & flip
- • Short-term loans (not long-term)
- • More expensive overall
Loan Types for Self-Employed Borrowers
Understanding the different loan types available to self-employed borrowers is crucial for choosing the right lender. Here are the most common options:
Bank Statement Loans
Qualify using 12-24 months of personal or business bank statements instead of tax returns. Lenders calculate your income based on deposits.
DSCR Loans
Qualify based on the property's rental income, not your personal income. No tax returns, W-2s, or pay stubs required.
Asset-Based Loans
Qualify using liquid assets (stocks, bonds, retirement accounts) instead of income. Assets are 'depleted' over the loan term.
P&L Statement Loans
Use CPA-prepared profit & loss statements to document income. Less documentation than traditional loans.
1099 Loans
Qualify using 1099 forms showing contractor/freelance income. Good for gig workers and independent contractors.
No-Doc Loans
Minimal documentation required. Based primarily on credit, down payment, and property value.
Learn More About DSCR Loans
DSCR loans are the easiest way for self-employed investors to qualify. Read our complete guide to California DSCR loans.
Read DSCR GuideHow to Qualify as Self-Employed
Qualifying for a mortgage as a self-employed borrower is different from W-2 employees, but it's absolutely achievable. Here's what lenders look for:
1. Credit Score Requirements
Most self-employed loan programs require 620-640 minimum credit scores. DSCR loans typically need 640+, while bank statement loans can go as low as 620. Bad credit specialists accept scores from 580 with larger down payments.
2. Down Payment Expectations
Larger down payments improve your approval odds and reduce interest rates. Every 5% additional down payment can save you 0.25-0.5% on your rate.
3. Documentation Needed
Bank Statement Loans:
- • 12-24 months personal or business bank statements
- • Business license or proof of self-employment
- • CPA letter (sometimes)
- • Credit report
- • Property appraisal
DSCR Loans:
- • Current lease agreement (if rented)
- • Property appraisal with rent schedule
- • Credit report
- • Property insurance
- • NO income documentation required
4. Income Calculation Methods
Bank Statement Loans
Lenders analyze 12-24 months of deposits and subtract 25-50% for business expenses. Example: $10K/month deposits × 50% = $5K qualifying income.
DSCR Loans
Based on property's rental income only. Monthly rent ÷ monthly payment = DSCR ratio. Need 1.0+ to qualify (some lenders accept 0.75+).
Asset-Based Loans
Total liquid assets ÷ loan term = monthly income. Example: $1.2M assets ÷ 360 months = $3,333/month qualifying income.
Traditional Loans
Average last 2 years of tax returns. Add back depreciation and one-time expenses. Declining income is problematic.
5. Common Challenges & Solutions
Challenge: Tax write-offs reduce income
Your tax returns show $50K but you actually make $120K.
Solution: Use bank statement loans or DSCR loans that don't require tax returns.
Challenge: Irregular income patterns
Some months you make $15K, others $3K.
Solution: Bank statement loans average your deposits over 12-24 months, smoothing out fluctuations.
Challenge: Less than 2 years self-employed
You started your business 14 months ago.
Solution: DSCR loans don't require employment history. Some bank statement lenders accept 12 months if you were in the same industry.
Challenge: Multiple income streams
You have 3 businesses, rental income, and 1099 work.
Solution: Bank statement loans capture all deposits regardless of source. Asset-based loans ignore income entirely.
Frequently Asked Questions
Can I get a mortgage with only 1 year of self-employment?
Yes, some lenders accept less than 2 years of self-employment if you have strong credit (700+), significant reserves, and were in the same industry before going self-employed. DSCR loans don't require any self-employment history since they qualify based on property income.
Do I need to provide tax returns?
Not necessarily. Bank statement loans, DSCR loans, and asset-based loans don't require tax returns. You can qualify using 12-24 months of bank statements, rental income analysis, or liquid assets instead.
What credit score do I need as a self-employed borrower?
Minimum credit scores range from 580-680 depending on the loan type. Bank statement loans typically require 620-640, DSCR loans need 640-660, and bad credit programs start at 580 with larger down payments.
How is my income calculated for self-employed mortgages?
It depends on the loan type. Bank statement loans use 12-24 months of deposits (minus 25-50% for expenses). DSCR loans use the property's rental income. Asset-based loans deplete your assets over the loan term. Traditional loans average 2 years of tax returns.
Can I use bank statements instead of tax returns?
Yes! Bank statement loans are specifically designed for this. Lenders analyze 12-24 months of personal or business bank statements to calculate your income based on deposits.
What if I have bad credit and I'm self-employed?
Several lenders specialize in bad credit + self-employed combinations. CrossCountry Mortgage accepts scores from 580, though you'll need a larger down payment (20-25%) and will pay higher rates (7%+).
How long does approval take for self-employed borrowers?
Pre-approval can happen in 24-48 hours. Full approval and closing typically takes 15-30 days for non-QM loans, though some lenders like AD Mortgage can close DSCR loans in 10-14 days.
Can I buy investment property as a self-employed borrower?
Absolutely! DSCR loans are actually easier for investment properties since you qualify based on the property's rental income, not your personal income. No tax returns or income verification required.
Do I need a larger down payment as a self-employed borrower?
Down payments range from 10-25% depending on the loan type and your credit. Bank statement loans can go as low as 10%, while DSCR loans typically require 20-25%. This is comparable to conventional loans.
What documents do I need for a self-employed mortgage?
For bank statement loans: 12-24 months of bank statements, business license, CPA letter. For DSCR loans: lease agreement, property appraisal, insurance. For traditional loans: 2 years tax returns, P&L statements, business license.
Can I use 1099 income to qualify?
Yes! Many lenders offer 1099 loan programs specifically for independent contractors and freelancers. You'll typically need 2 years of 1099s and may need to show consistent or increasing income.
What about gig economy workers (Uber, DoorDash, etc.)?
Gig workers can qualify using bank statement loans or 1099 programs. Lenders will analyze your bank deposits or 1099 income over 12-24 months. Consistency and upward trends help.
How do lenders verify self-employment income?
It depends on the program. Bank statement loans verify deposits. DSCR loans verify rental income via lease and appraisal. Traditional loans verify via tax returns and CPA letters. Some lenders may call clients or verify business licenses.
Can I refinance as a self-employed borrower?
Yes! All the same loan types available for purchases are available for refinances. DSCR loans are particularly popular for refinancing investment properties since they don't require income verification.
What are the best rates available for self-employed borrowers?
Rates currently range from 5.99% to 7.5%+ depending on credit score, down payment, and loan type. DSCR loans offer the best rates (5.99-6.75%), while bad credit programs are higher (7%+). Rates are typically 0.5-1.5% higher than conventional loans.
Ready to Get Pre-Qualified?
Talk to a California self-employed mortgage specialist today. No obligation, no hard credit pull.