... New here looking for information about lending options.
20 Replies
- 7moJay TolugantiPro MemberInvestor · Clearwater, FL · Member since 2025 · 224 posts · 77 votesIf you are looking to get into fix n flips, then you can always partner with someone. You can think about buy n hold, once you have steady source of income, you understand rental market. I would recommend you get your fundamentals right. I would recommend below books: Strategy: Rich man in Babylon Robert Kiosaki - Rich Dad Poor Dad - Cashflow Quadrant - Guide to investing - Real book of Real Estate Real Estate Journey: Ken McKelroy - ABCs of Real Estate Investing - Advanced book of Real Estate Investing - ABC of Property management
- Member since 2026 · 17 posts · 13 votes7mo
Quote from @Jay Toluganti:
If you are looking to get into fix n flips, then you can always partner with someone. You can think about buy n hold, once you have steady source of income, you understand rental market. I would recommend you get your fundamentals right. I would recommend below books: Strategy: Rich man in Babylon Robert Kiosaki - Rich Dad Poor Dad - Cashflow Quadrant - Guide to investing - Real book of Real Estate Real Estate Journey: Ken McKelroy - ABCs of Real Estate Investing - Advanced book of Real Estate Investing - ABC of Property managementOK great, thank you for the advice. I'm looking t buy soon and therefore shopping for a loan.
- Lender · Ann Arbor, MI · Member since 2015 · 45 posts · 10 votes7mo
If you're looking to buy turnkey or rent-ready properties, DSCR loans would be a viable option. Self-employment is not an issue and rates aren't far off from a conventional loan. My company offers them and I'd be happy to discuss further or answer any questions.
- Member since 2026 · 17 posts · 13 votes7mo
Quote from @Marcia Gilad:
If you're looking to buy turnkey or rent-ready properties, DSCR loans would be a viable option. Self-employment is not an issue and rates aren't far off from a conventional loan. My company offers them and I'd be happy to discuss further or answer any questions.
Ok thank you, I maybe in contact soon.
- Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes7mo
Toby, speaking as a mortgage company owner, former bank executive, and investor with over 200 personal deals, being self‑employed isn't a barrier so much as a different underwriting path. If you have strong income and at least two years in business, your first step should be to see how you actually qualify on a conventional loan by running your numbers through Fannie Mae's income calculator at https://singlefamily.fanniemae.com/applications-technology/income-calculator, which is exactly what Fannie and Freddie lenders rely on. When tax returns don't tell the full story, bank statement loans can be a very practical option, typically reviewing 12 to 24 months of statements, isolating business deposits, applying an expense factor often around 50 percent, and averaging the remainder into qualifying income. Rates are usually higher than conventional financing but often still meaningfully cheaper and more flexible than a short‑term bridge loan. Using a bank statement loan to purchase a small multifamily property as your first combined residence and investment can absolutely make sense in today's climate if the numbers are conservative and the property fundamentals are solid. As you progress further into investing, many investor‑focused loan programs such as DSCR, fix‑and‑flip, and ground‑up spec construction place far more emphasis on credit profile, down payment, liquidity, and experience than on your current job or income documentation (we don't pay attention to your job or current income for those types of loans). While you'll often hear that 15 to 20 percent down is acceptable, in practice putting more capital into the deal frequently improves cash flow, debt coverage, and long‑term risk management. The key is matching the right loan structure to the right deal, not forcing a deal to work around a specific loan type.
- Member since 2026 · 17 posts · 13 votes6mo
Quote from @Doug Smith:
Toby, speaking as a mortgage company owner, former bank executive, and investor with over 200 personal deals, being self‑employed isn't a barrier so much as a different underwriting path. If you have strong income and at least two years in business, your first step should be to see how you actually qualify on a conventional loan by running your numbers through Fannie Mae's income calculator at https://singlefamily.fanniemae.com/applications-technology/income-calculator, which is exactly what Fannie and Freddie lenders rely on. When tax returns don't tell the full story, bank statement loans can be a very practical option, typically reviewing 12 to 24 months of statements, isolating business deposits, applying an expense factor often around 50 percent, and averaging the remainder into qualifying income. Rates are usually higher than conventional financing but often still meaningfully cheaper and more flexible than a short‑term bridge loan. Using a bank statement loan to purchase a small multifamily property as your first combined residence and investment can absolutely make sense in today's climate if the numbers are conservative and the property fundamentals are solid. As you progress further into investing, many investor‑focused loan programs such as DSCR, fix‑and‑flip, and ground‑up spec construction place far more emphasis on credit profile, down payment, liquidity, and experience than on your current job or income documentation (we don't pay attention to your job or current income for those types of loans). While you'll often hear that 15 to 20 percent down is acceptable, in practice putting more capital into the deal frequently improves cash flow, debt coverage, and long‑term risk management. The key is matching the right loan structure to the right deal, not forcing a deal to work around a specific loan type.
Thank you fro the detailed answer, very helpful. I will def. use the Fannie Mae’s income calculator to get more clarity.
- Lender · Marlboro, NJ · Member since 2025 · 239 posts · 146 votes7mo
Being self-employed isn’t a deal breaker, it just changes how you structure things.
Bank statement loans can work well for self-employed borrowers, especially if your tax returns show lower income due to write-offs. They’re long-term loans, just typically at a slightly higher rate and with 15–25% down.
Another option worth considering is a DSCR loan. Those qualify based on the property's rental income rather than your personal income. If the duplex or triplex cash flows and meets the lender's coverage ratio, your self-employment status becomes far less relevant.
Hard money is usually short-term bridge capital, so I wouldn’t use that for a first long-term hold unless you’re planning a quick value-add refinance.
The bigger question isn’t just loan type. It’s whether the property actually supports today’s rates with real numbers. In this environment, the deal has to work day one.
- Member since 2026 · 17 posts · 13 votes6mo
Quote from @Pierre Guirguis:
Being self-employed isn’t a deal breaker, it just changes how you structure things.
Bank statement loans can work well for self-employed borrowers, especially if your tax returns show lower income due to write-offs. They’re long-term loans, just typically at a slightly higher rate and with 15–25% down.
Another option worth considering is a DSCR loan. Those qualify based on the property's rental income rather than your personal income. If the duplex or triplex cash flows and meets the lender's coverage ratio, your self-employment status becomes far less relevant.
Hard money is usually short-term bridge capital, so I wouldn’t use that for a first long-term hold unless you’re planning a quick value-add refinance.
The bigger question isn’t just loan type. It’s whether the property actually supports today’s rates with real numbers. In this environment, the deal has to work day one.
Yes, the fact that I'm self-employed might not be the problem, but the due taxes for tax returns that show income to qualify for a house especially in California are a problem by itself. But DSCR loan might be a good option as well. If I occupy one unit myself, I'm assuming a tri-plex makes more sense then a duplex ?
- Lender · Marlboro, NJ · Member since 2025 · 239 posts · 146 votes6mo
Quote from @Toby Real:
Quote from @Pierre Guirguis:
Being self-employed isn’t a deal breaker, it just changes how you structure things.
Bank statement loans can work well for self-employed borrowers, especially if your tax returns show lower income due to write-offs. They’re long-term loans, just typically at a slightly higher rate and with 15–25% down.
Another option worth considering is a DSCR loan. Those qualify based on the property's rental income rather than your personal income. If the duplex or triplex cash flows and meets the lender's coverage ratio, your self-employment status becomes far less relevant.
Hard money is usually short-term bridge capital, so I wouldn’t use that for a first long-term hold unless you’re planning a quick value-add refinance.
The bigger question isn’t just loan type. It’s whether the property actually supports today’s rates with real numbers. In this environment, the deal has to work day one.
Yes, the fact that I'm self-employed might not be the problem, but the due taxes for tax returns that show income to qualify for a house especially in California are a problem by itself. But DSCR loan might be a good option as well. If I occupy one unit myself, I'm assuming a tri-plex makes more sense then a duplex ?
If you plan to occupy one unit, a true DSCR loan typically will not be an option. DSCR programs are designed for non-owner-occupied investment properties.
For an owner-occupied duplex or triplex, lenders will underwrite you personally, but they can usually use projected rental income from the other units, often 75 percent of market rent, to help you qualify.
As for duplex vs. triplex, a triplex can help from a qualification standpoint because you have two income-producing units offsetting the payment instead of one. That can improve your debt-to-income profile.
That said, it is not automatically better. Triplexes usually mean a higher purchase price, higher taxes and insurance, and more management. The key is which property supports today’s rates comfortably and still leaves you margin.
- Member since 2026 · 1 post · 0 votes6mo
For self-employed borrowers, bank statement loans are often a more cost-effective path compared to hard money, especially if your goal is buy-and-hold. Many lenders today do allow duplex and triplex with bank statement programs, but the key factors will be your credit, down payment, and cash flow profile.
In the current market, I usually suggest investors run both scenarios (bank statement vs. DSCR) to see which gives better leverage and long-term flexibility.
Happy to share what I’m seeing in today’s market if helpful.
- 6moJonathan LeeBusiness MemberLender · FL · Member since 2025 · 86 posts · 30 votes
Hi Toby,
If you’re self-employed and your tax returns don’t show strong income, a bank statement loan can be a good option. It’s usually more expensive than conventional, but often cheaper and cleaner than hard money.
Many self-employed borrowers qualify using tax return add-backs. If it's strictly an investment property, a DSCR loan might also make more sense than a bank statement loan.
A duplex or triplex can be a smart first move, especially if you live in one unit. That gives you better financing options than buying it purely as an investment.
Feel free to reach out if you’d like to dive deeper into your specific situation.
Helm Mortgage Corp.5124 Reviews - 6moRyan ThomsonBusiness MemberReal Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votesOne option nobody has mentioned: if you find a seller with a VA or FHA loan from 2019 to 2022, you can assume that loan at the original rate, usually 2.5 to 3.5%, instead of qualifying for new financing at 6.25%.
The underwriting is different from a bank statement loan. The VA or FHA servicer qualifies you based on standard debt-to-income ratios, and self-employment is handled through tax return documentation, not a bank statement premium. For a lot of self-employed buyers in LA, this is a cleaner path than a bank statement loan with a 1 to 2 point rate markup.
On a $450K assumable loan balance, the difference between 3% and 6.25% is about $880/month. For a duplex or triplex in LA where the numbers are already tight, that gap is what makes the property work or not.
The process takes 45 to 90 days versus 30 for conventional, and not every listing has one. But for a self-employed buyer trying to make a high-cost-market deal pencil, it is worth filtering specifically for VA and FHA listings. Ask the listing agent if the loan is assumable before dismissing any property on price alone.
The Assumable Guy544 Reviews- Member since 2026 · 17 posts · 13 votes5mo
Quote from @Ryan Thomson:
One option nobody has mentioned: if you find a seller with a VA or FHA loan from 2019 to 2022, you can assume that loan at the original rate, usually 2.5 to 3.5%, instead of qualifying for new financing at 6.25%.
The underwriting is different from a bank statement loan. The VA or FHA servicer qualifies you based on standard debt-to-income ratios, and self-employment is handled through tax return documentation, not a bank statement premium. For a lot of self-employed buyers in LA, this is a cleaner path than a bank statement loan with a 1 to 2 point rate markup.
On a $450K assumable loan balance, the difference between 3% and 6.25% is about $880/month. For a duplex or triplex in LA where the numbers are already tight, that gap is what makes the property work or not.
The process takes 45 to 90 days versus 30 for conventional, and not every listing has one. But for a self-employed buyer trying to make a high-cost-market deal pencil, it is worth filtering specifically for VA and FHA listings. Ask the listing agent if the loan is assumable before dismissing any property on price alone.This is a great idear .. never heard about it! Thank you. So the VA listings will be combined with my bankstatement loan ?
- Lender · Chicago, IL · Member since 2025 · 203 posts · 101 votes6mo
As a mortgage broker with over 25 years of experience working with real estate investors, and as a real estate investor myself, I can tell you that asking about lending options early is one of the smartest decisions you can make. Financing should never be an afterthought. The loan strategy must align with the investment strategy from the beginning.
I have access to over 240 plus lenders, which is important because no single lender fits every scenario. Different lenders specialize in different property types, borrower profiles, credit layers, and risk tolerance. Knowing which lender and which program fits a specific property and exit strategy can make the difference between a smooth closing and a stalled deal.
The lending programs available today include conventional investment loans, FHA loans, VA loans, DSCR loans, non QM loans, bank statement loans, stated income programs, bridge loans, fix and flip loans, ground up construction loans, construction to permanent loans, portfolio loans, commercial loans, mixed use financing, multifamily financing, jumbo investment loans, ITIN programs, foreign national loans, asset based lending, renovation loans, and cash out refinance programs for capital recycling.
Each of these programs has different underwriting guidelines, down payment requirements, reserve requirements, credit standards, appraisal expectations, and exit strategy considerations. A DSCR lender focuses on the property’s income and debt service coverage ratio, while a conventional lender focuses on personal income and debt to income ratio. A bridge lender evaluates timeline and exit strategy. A construction lender requires a detailed scope of work, contractor bids, budgets, and draw schedules.
Because I actively invest as well, I understand that investors are not just looking for approval. They are looking for structure, speed, and scalability. That is why working with someone who understands how each program applies to different property conditions and investment strategies is critical. Proper loan structuring on the front end reduces risk, prevents delays, and positions the deal for long term growth.
When financing is aligned correctly with the property type, condition, and overall strategy, it becomes a tool for building wealth rather than a hurdle to overcome. If you are open to sharing more about your goals and the type of property you are targeting, I would be happy to help you determine the most strategic lending path.
- Lender · Atlanta, GA · Member since 2025 · 100 posts · 9 votes6mo
Welcome, Toby, and thanks for sharing. I am a residential investment loan officer and would be more than happy to serve as a resource to help you navigate through and become better educated about lending options / borrower strategies.
- Member since 2025 · 12 posts · 7 votes6mo
Toby, being self employed is not a deal breaker. Before choosing the type of loan program (bank statement, dscr, renovation, etc.) you first need to decide how are you going to maximize the return on the deal you're getting into. Then, you can match the loan program that will best help you meet your goal. If you want to go over any scenarios, I'm open to walk you through your options.
- Member since 2026 · 17 posts · 13 votes5mo
I would like to thank everybody who participated in this thread. I’ve gained a lot of valuable knowledge from it—thank you!
I’m actually prequalified for a $1.2 million bank statement loan—hooray!
I’ll be looking at a property in Los Angeles, California tomorrow. The seller appears to be under some distress, and it’s a duplex with an asking price of $850,000. It’s listed as being valued at over $1 million, but I’m not sure how accurate that is or how to properly verify it—especially since this is my first purchase.
I’ll take a look at the property tomorrow and report back here. In the meantime, is there anything specific I should watch out for when viewing the property?
I’m also planning to open another thread since this one is more focused on my loan questions. I’ll post the link here (if that’s allowed—I know some forums are sensitive about external links).
Lastly, I’d like to add that, given how expensive and competitive California is, I’m also considering purchasing in Texas. Is anyone here licensed to issue loans in Texas?
- Member since 2026 · 17 posts · 13 votes5mo
This is the Post started under Real Estate Deal Analysis & Advice : https://www.biggerpockets.com/forums/88/topics/1283744-looki...
- 5moRaymond J. RodriguesBusiness MemberLender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
@Toby Real bank statement loans can vary drastically when it comes to interest rates from one lender to the next. It's a good idea for you to compare between two just to make sure you are getting a good deal.
Helm Mortgage Corp.5125 Reviews - Member since 2026 · 17 posts · 13 votes1mo
I would like to circle back here for an update I finally found a suitable property and a good bank statement option:
Down Payment : 3,5%
Intrest Rate : 7.25 %
I would like to find a second option, just in case with a different lender for a property in Texas, which can hopefully get me a better interest rate.
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