In this episode of the Mortgage Research Network Podcast, host Paul Centopani speaks with Mikhail Burdeen, Regional Sales Manager at Cornerstone Home Lending, about what it takes to qualify for a mortgage when you're self-employed. Unlike traditional W-2 employees, self-employed borrowers often face additional documentation requirements and a more detailed review of their income, business expenses, and tax returns.
Mikhail explains why earning substantial business revenue doesn't necessarily translate into an equally high qualifying income. He discusses how lenders evaluate business cash flow, deductions, and net income, and why borrowers sometimes discover that they qualify for less than expected. He also explores alternative mortgage options, including bank statement loans, 1099 programs, asset-based financing, and DSCR loans for real estate investors.
The conversation also covers how down payment requirements and interest rates may differ between conventional and alternative mortgage products, along with common mistakes self-employed homebuyers make during the application process. Mikhail emphasizes the importance of keeping organized financial records, maintaining good credit, and working with both a mortgage professional and tax preparer before filing taxes or beginning the homebuying process.
Whether you're a business owner, independent contractor, freelancer, or real estate investor, this episode offers practical guidance on understanding your mortgage options and preparing to buy a home.
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Comment below: If you're self-employed, what's been your biggest challenge when applying for a mortgage?
Connect with Mortgage Research Network:
YouTube: https://www.youtube.com/@MortgageResearchNetwork
Instagram: https://www.instagram.com/mortgageresearchnetwork/
Facebook: https://www.facebook.com/mtgresearchnews
Website: MortgageResearch.com
Connect with Mikhail Burdeen:
LinkedIn: https://www.linkedin.com/in/mikhailburdeen/
First Time Homebuyer Cheat Sheet: https://bit.ly/4w8CiVM
Homebuyer Calculators:https://bit.ly/4n0hDPv
Connect With a Lender: https://bit.ly/426Gyaw
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0:00 – Intro
1:37 – Mortgages for Self-Employed Borrowers
2:27 – Income Documentation Requirements
4:30 – Mortgage Options for Self-Employed Buyers
5:29 – How Alternative Loans Compare
6:21 – Down Payment Requirements
7:39 – Interest Rates and Loan Costs
8:02 – Are Self-Employed Borrowers at a Disadvantage?
9:35 – How Business Revenue Affects Qualification
10:44 – Common Mistakes to Avoid
11:38 – Alternative Ways to Qualify
13:20 – How to Prepare for a Mortgage
16:19 – Advice for Today's Homebuyers
19:00 – Outro
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#SelfEmployedMortgage #Homebuying #MortgageTips
