Why Now is the Perfect Time for Self-Employed Home Buyers in Southern California and Washington

If you’re self-employed and have been waiting to file another year of tax returns before buying a home, the Southern California housing market (and parts of Washington) just handed you an opportunity you don’t want to miss.

Traditionally, alternative documentation (Alt Doc) and bank statement mortgage programs came with higher rates — often 1% to 1.5% above conventional loans. But recently, that gap has narrowed dramatically. In some cases, bank statement programs are just 0.25%–0.50% higher, and we’ve even seen instances where they beat conventional rates entirely.

This is a game-changer for entrepreneurs, small business owners, and freelancers who want to qualify based on their bank deposits instead of taxable income. With down payments of 20% or more and solid credit, today’s self-employed buyer can access far more competitive financing without paying extra taxes just to qualify.

Key Advantages Right Now:

• Minimal Rate Difference: Some borrowers see as little as a quarter-point spread.
• Lower Expense Factors: Certain programs use as low as 15% instead of the standard 50%, boosting qualifying income.
• Faster Market Entry: No need to delay for another year’s tax return.
• Break-Even Advantage: Often, the cost savings outweigh any future tax benefits for years to come.

If you or someone you know is self-employed and ready to buy, this may be the best window we’ve seen in years to make a move. Whether you’re purchasing a first home, upgrading, downsizing, or investing, the opportunity is here.
📞 Contact Bill Provost at Franklin Loan Center today for a free break-even analysis and to explore your qualifying options.