Best Lenders for Self-Employed (According to Reddit)
Real recommendations from self-employed borrowers who've actually closed loans. No tax returns required. Bank statements, DSCR loans, and alternative income verification.
If you're self-employed and trying to get a mortgage, you've probably discovered that traditional lenders make it unnecessarily complicated. They want 2 years of tax returns, W2s you don't have, and they freak out when they see your business deductions.
Reddit communities like r/RealEstate, r/Entrepreneur, and r/personalfinance are filled with self-employed folks sharing which lenders actually approved them. This guide compiles the most recommended lenders and explains what makes each one work for self-employed borrowers.
TL;DR - Quick Answers
- Best overall: Capital Bridge Solutions (DSCR loans, no tax returns, 24-48 hr approval)
- Best for primary residence: Griffin Funding (bank statement loans)
- Best for bad credit: CrossCountry Mortgage (accepts 580 credit)
- Best online experience: New American Funding (mobile app)
- Rates: 5.99-8% depending on credit, down payment, and loan type
Top Reddit-Recommended Lenders
Capital Bridge Solutions
DSCR loans without tax returns. Perfect for self-employed investors.
✅ Pros
- • No tax returns needed
- • Fast approval (24-48 hours)
- • California focused
- • Investment properties OK
❌ Cons
- • Primarily investment properties
- • Higher rates than conventional
Real Reddit Quote:
"Used them for my rental property. Approved in 2 days without showing tax returns. 10/10 would recommend."
Griffin Funding
Bank statement loans for primary residences and investment properties.
✅ Pros
- • 12 or 24 months bank statements
- • Primary residence OK
- • Lower credit scores accepted
- • Online application
❌ Cons
- • Income calculated at 50-75% of deposits
- • More paperwork than DSCR
Real Reddit Quote:
"Got my mortgage with just bank statements. No tax returns. As a freelancer this was a lifesaver."
CrossCountry Mortgage
Best for self-employed with lower credit scores.
✅ Pros
- • Accepts 580 credit
- • Bad credit programs
- • Large national lender
- • Multiple loan types
❌ Cons
- • Higher rates for lower credit
- • Longer approval times
Real Reddit Quote:
"My credit was 620. They still approved me. Had to put 25% down but worth it to own."
New American Funding
Best online experience for tech-savvy self-employed borrowers.
✅ Pros
- • Great mobile app
- • Fast digital process
- • Responsive customer service
- • Multiple program options
❌ Cons
- • Not the lowest rates
- • Less flexible than smaller lenders
Real Reddit Quote:
"Everything was online. Uploaded docs from my phone. Super easy process."
Local Credit Unions
Sometimes offer portfolio loans for self-employed members.
✅ Pros
- • Relationship-based lending
- • More flexible underwriting
- • Lower fees
- • Local decision making
❌ Cons
- • Must be a member
- • Inconsistent availability
- • Smaller loan amounts
Real Reddit Quote:
"My local CU approved me when banks wouldn't. They looked at my whole financial picture, not just tax returns."
Pro Tips from Reddit Users
Stop Stressing About Tax Write-Offs
Everyone says 'write off everything!' but then you can't qualify for a mortgage. With bank statement/DSCR loans, write off whatever you want. Your tax returns don't matter.
Get Quotes from 3-5 Lenders
Rates and terms vary wildly. One lender quoted me 8.5%, another 7.25% for the same loan. Shop around. It's worth the time.
Clean Up Your Bank Statements
If doing bank statements, avoid large unexplained transfers. Lenders scrutinize every transaction. Keep business and personal separate if possible.
Consider DSCR for Rentals
If buying investment property, DSCR is the easiest. They literally don't care about your income. Property just needs to rent for more than the mortgage.
Build Relationship with a Broker
Good mortgage broker knows which lenders are flexible with self-employed. They can match you with the right program instead of you getting denied 5 times.
Most Asked Questions on Reddit
Can I really get a mortgage without tax returns?
Yes! Bank statement loans use 12-24 months of business bank statements instead of tax returns. DSCR loans don't look at your income at all—they only care if the rental income covers the mortgage. These are legit programs from licensed lenders, not scams.
Will the rates be crazy high?
Rates are typically 0.5-2% higher than conventional loans. For example, if conventional rates are 6.5%, you might pay 7-8% for a bank statement loan. DSCR loans range from 5.99-8% depending on credit and down payment. Not cheap, but way better than hard money (10-14%).
What if I've been self-employed for less than 2 years?
DSCR loans don't care how long you've been self-employed since they don't verify income. Bank statement loans typically want 2 years, but some lenders accept 12 months. Asset-based loans are another option if you have significant liquid assets.
Can I use this for my primary residence?
DSCR loans are investment properties only. But bank statement loans work for primary residences, second homes, AND investment properties. If you're buying a home to live in, bank statement loans are your best bet.
What credit score do I need?
Most lenders want 620-640 minimum for self-employed loans. Some go as low as 580 but expect higher rates and bigger down payments. If your credit is 700+, you'll get the best rates and terms.
How much do I need to put down?
Typically 15-25% down. DSCR loans usually require 20-25%. Bank statement loans can go as low as 10-15% on primary residences. Investment properties almost always need at least 20% down.
Want More Detailed Information?
Check out our comprehensive guide comparing all 10 top lenders for self-employed borrowers in California, including detailed pros/cons, rates, and qualification requirements.
Read Complete GuideReady to Stop Getting Rejected?
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