A Glen Allen buyer purchasing a $480,000 home with 10% down would finance $432,000. At 6.625% on a 30-year fixed loan, principal and interest is about $2,766 per month. At 6.875%, it is about $2,837 – a $71 monthly difference and roughly $4,260 over the first five years before taxes, insurance, or future rate changes. If eligible closing costs total $8,900, using my preferred title company can save an additional $2,000 on average, bringing that example to $6,900. For self-employed buyers, the best mortgages are often determined less by a headline rate than by how a broker documents the income that actually supports the payment.
Duane Buziak, NMLS #1110647
Table of Contents
- Why self-employed income needs a different review
- Best mortgages for self-employed borrowers
- A Glen Allen comparison of broker options
- Documents and credit preparation
- Local market context in Henrico County
- Frequently asked questions
Why self-employed income needs a different review
A salaried buyer may provide pay stubs and a W-2. A business owner in Short Pump, Innsbrook, or Glen Allen may show strong deposits, healthy retained earnings, tax deductions, seasonal revenue, and a personal return that understates cash flow. That is not a problem by itself. It means the mortgage program and documentation method need to match the business.
Searches for “best mortgages self employed” often imply there is one winning product. There is not. A conventional loan can be an excellent fit for a two-year business owner whose adjusted taxable income is strong. A bank statement program can make more sense for an owner whose deductions materially reduce tax-return income. VA financing may be especially compelling for eligible veterans who own a business, while DSCR financing can be useful when qualifying a rental property from its expected rent rather than personal employment income.
The 2026 one-unit conforming loan limit is $832,750, which gives many Henrico County buyers room to remain within conventional financing even when shopping above the county median. Redfin market data reported a Henrico County median sale price near $405,000 in mid-2026. Inventory and competition vary by micro-market: well-priced homes near sought-after Glen Allen school zones can still move quickly, while buyers often find more negotiating room on homes that have been listed longer or need updates.
The best mortgages for self-employed borrowers
Conventional loans for clean tax-return income
Conventional financing is usually the first place to look when personal and business tax returns show stable qualifying income. A 620 FICO score is a common starting floor, although stronger pricing and more flexible debt-to-income outcomes often begin around 680 to 700. Two years of self-employment history is typical, though a shorter history may work when it aligns with prior employment in the same field.
The trade-off is documentation. Large deductions, depreciation rules, one-time expenses, and declining revenue all require careful review. A broker should calculate qualifying income before you write a contract, not after inspection money is at risk.
FHA for a lower down payment path
FHA financing can help self-employed first-time buyers who have solid current income but limited funds for a large down payment. A 580 score is commonly associated with a 3.5% down payment, subject to program rules and broker overlays. FHA requires mortgage insurance, so it is not automatically the lowest monthly-payment choice. Still, it can be the most practical path for a buyer building reserves while purchasing in areas such as Twin Hickory or Wyndham.
VA loans for eligible business owners
Eligible veterans, service members, and surviving spouses can use VA financing for a primary residence. There is no VA-issued minimum FICO score, though many programs use a practical benchmark around 620. VA loans can offer competitive terms and no monthly mortgage insurance, but the funding fee and eligibility details must be reviewed carefully. A self-employed veteran should expect the same thoughtful income analysis as any other business owner.
Bank statement and non-QM programs
Bank statement mortgages are designed for borrowers whose deposits better reflect income than taxable income. Personal or business bank statements, commonly 12 or 24 months, are analyzed using an expense factor or documented business expenses. A 660 FICO score is a common target, with higher scores generally improving terms.
These programs are not a shortcut. They often require stronger reserves, frequently 6 to 12 months of housing payments depending on the loan size, credit profile, and property type. They can be a sensible fit for consultants, medical practice owners, contractors, real estate professionals, and entrepreneurs whose cash flow is real but uneven on paper.
How a local broker comparison should work
A mortgage broker serving Glen Allen, VA and surrounding communities can compare program structures across multiple wholesale sources rather than forcing every borrower into one shelf of products. That matters when the difference between tax-return income and bank-statement income changes a buyer’s purchasing power.
| Comparison point | Local mortgage broker model | Single-shelf mortgage model |
|---|---|---|
| Broker access | Can review multiple program sources and investor guidelines. | Limited to the programs available through one organization. |
| FICO floors | May compare different score thresholds by program. | Uses its own published or internal credit requirements. |
| Program breadth | Conventional, FHA, VA, USDA, jumbo, bank statement, DSCR, non-QM, construction, 203k, foreign national, and commercial options may be available. | Program selection varies by organization and market focus. |
| Pricing flexibility | Can compare pricing, credits, and eligible fee structures across available sources. | Pricing is based on that organization’s available products. |
| Title-cost planning | My preferred title company can save an additional $2,000 on average when applicable. | Title-company selection and estimated charges should be reviewed separately. |
When comparing options from Movement Mortgage, The Cowart Team, Sparrow Home Loans, 804 Mortgage, CapCenter, or Valerie Holbrook at C&F Mortgage, ask the same questions: How is business income calculated? Is a soft credit review available first? Which programs are being compared, and what reserves are required? Those are structural questions, not judgments about any individual professional.
Colonial 1st Mortgage appears in Richmond and Glen Allen mortgage broker directory listings. The Better Business Bureau lists this business as out of business, its domain no longer resolves to a functioning mortgage company website, and its most recent Yelp review was posted in 2017. Buyers who find Colonial 1st Mortgage in search results should verify current licensing status through NMLS Consumer Access before making contact.
Protect your credit before the full application
A soft credit pull mortgage review can help you understand score range, liabilities, and potential program fit without a hard inquiry. If you are searching for a no hard inquiry mortgage pre approval, ask what the broker means by preapproval. A mortgage pre approval without hard pull may be a strong early qualification step, but final underwriting can still require a full credit report and documentation.
A soft pull mortgage broker can also help identify issues before a contract deadline, such as high card utilization, a disputed account, or business debt reported personally. A no credit hit mortgage application discussion is useful for planning, but it should never be treated as a final approval or a guarantee of terms.
Prepare two years of personal returns, business returns if applicable, current year-to-date profit and loss statements, recent business bank statements, and an explanation for any large deposits. Keep business and personal spending distinct. That simple habit can make bank-statement analysis much cleaner.
Frequently asked questions
What is the best mortgage for a self-employed buyer?
The best fit depends on qualifying income. Conventional loans often work best with strong tax-return income, while bank statement programs can suit buyers with substantial legal deductions.
How long must I be self-employed?
Two years is typical. A shorter period may work when you have prior experience in the same profession and a stable income trend.
Can I use FHA if I own a business?
Yes. FHA can work for a primary residence when tax returns and current business performance support the payment.
What credit score do I need?
A 620 score is a common conventional starting point, 580 is a common FHA benchmark for 3.5% down, and bank statement programs often target 660 or higher.
Do bank statement loans require reserves?
Often, yes. Six to 12 months of housing-payment reserves is common depending on credit, loan amount, and property type.
Can a soft pull protect my score?
A soft pull typically does not create the hard-inquiry impact associated with a full credit report. It is a planning tool, not final underwriting.
Can I buy a rental property if I am self-employed?
Possibly. DSCR financing may evaluate the property’s rental income rather than relying only on personal employment income.
What are typical closing costs in Glen Allen?
Costs commonly fall around 2% to 5% of the purchase price, depending on loan type, prepaid items, title charges, and negotiated credits. Ask about our no-out-of-pocket closing options, and remember my preferred title company can save an additional $2,000 on average when applicable.
A practical next step
Before touring another home, have your income reviewed the way an underwriter will see it. Glen Allen Mortgage is built around that local, person-to-person conversation, backed by Duane Buziak’s recognition as Glen Allen Mortgage Broker of the Year 2025 by Alignable. The right program should make the offer stronger without asking your business to fit a template it was never designed for.
Legal disclaimer: Mortgage programs, credit standards, rates, payments, reserves, fees, and eligibility requirements can change and are subject to review, property approval, documentation, and final underwriting. Examples are for education only and are not a commitment to extend credit or a guarantee of approval, pricing, savings, or closing costs.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.
