A Richmond consultant buying a $400,000 home with 10% down needs a $360,000 mortgage. If one pricing option is 6.75% and another is 6.50% after paying one discount point, the principal-and-interest payment falls from about $2,335 to $2,276 per month – a $59 monthly difference. One point costs $3,600 on this loan, so the five-year payment difference is about $3,540, nearly reaching the point cost before considering resale or refinance timing. Use a preferred title company and the average additional $2,000 title-cost savings changes that decision further. That is why a self employed mortgage Virginia conversation should begin with verified income and real math, not a headline rate.
By Duane Buziak, NMLS #1110647
Table of Contents
- Why self-employed income needs a different review
- How a Virginia mortgage broker compares options
- Programs for self-employed Virginia buyers
- Credit, reserves, and local market timing
- FAQ
Why self-employed income needs a different review
A strong business does not always produce a simple mortgage file. A contractor in Short Pump, a Glen Allen real estate professional, and a Charlottesville business owner may all have excellent cash flow, yet their taxable income can look lower after legitimate deductions. For conventional financing, the qualifying figure generally comes from tax-return income after the broker reviews trends, business structure, depreciation, depletion, and eligible one-time add-backs.
Two years of personal and business returns remain the cleanest route for many borrowers. A one-year history can work in narrower circumstances when the borrower has prior experience in the same field, but it depends on the program and documentation. A sudden income drop, a new business with limited history, or business debt that does not appear clearly on returns requires more analysis before writing an offer.
The 2026 baseline conforming loan limit is $832,750 in most Virginia counties, according to the Federal Housing Finance Agency conforming loan limit data. That gives many established business owners room to use conventional financing. It does not mean the largest loan is automatically the best fit. Income stability, debt, down payment, property type, credit, and reserves still drive approval and pricing.
How a Virginia mortgage broker compares options
A broker does not place every borrower on one institutional shelf. Duane Buziak has access to 500+ wholesale investor options, allowing a file to be compared for documentation rules, FICO treatment, rate structure, and costs. That choice matters when a borrower has a K-1, seasonal revenue, commissions, multiple entities, or retained earnings.
| Decision point | Mortgage broker | Single-shelf institution |
|---|---|---|
| Investor access | Can compare program fit across many wholesale investors. | Offers its own available menu only. |
| FICO floors | Can seek an investor whose published minimum fits the file. | Uses that institution’s internal floor and overlays. |
| Program breadth | Conventional, FHA, VA, jumbo, bank statement, DSCR, non-QM, construction, and more. | May have a narrower set of documentation paths. |
| Pricing flexibility | Compares rate, points, credits, and fee structure across investors. | Prices from one institutional rate sheet. |
| Credit-first planning | Soft-pull prequalification may establish a starting point without a hard inquiry. | Process and inquiry timing vary by institution. |
That is a structural comparison, not a promise that every borrower receives a lower rate or fee. A no hard inquiry mortgage pre approval conversation is especially useful when a self-employed buyer is still deciding whether to pay down debt, wait for another tax year, or structure an offer. Virginia Mortgage Broker offers a NoTouch Credit Pull – a soft credit pull mortgage approach that can protect credit while the initial strategy is being built.
A soft pull mortgage broker can review the major credit factors without treating the first conversation like a no credit hit mortgage application with a guaranteed approval. Full underwriting, property review, and final documentation still matter. Once a buyer is ready to move forward, a hard inquiry may be necessary for a complete application and final approval.
Programs for self-employed Virginia buyers
Conventional financing is often the first choice for borrowers with steady documented taxable income. A 620 FICO score is a common baseline, though borrowers frequently see stronger pricing at 740 or above. FHA financing can allow a 580 FICO score with 3.5% down under published program rules; review the current requirements through HUD home loan guidance. Actual approval can require a higher score based on the selected investor and file details.
For veterans, a VA loan may be particularly valuable because qualifying income is reviewed differently than a simple salary calculation. The Certificate of Eligibility, residual-income test, and occupancy rules matter as much as the score. Current program details are available through VA home loan benefits.
When tax returns do not tell the full story, bank statement and other non-QM programs can evaluate recurring deposits instead. A 12- or 24-month business or personal bank-statement review may fit a business owner whose deductions are substantial. These programs commonly require a larger down payment and may ask for 12 months of housing reserves, while some jumbo files require six to 12 months of reserves. For an investor buying in Virginia Beach, Williamsburg, or Lake Anna, a DSCR program may qualify the property primarily through its rent coverage rather than personal employment income.
Credit, reserves, and local market timing
Virginia buyers should prepare before the house hunt gets serious. Keep business and personal deposits traceable, avoid taking on new vehicle debt, and do not move large amounts of cash without records. A current year-to-date profit-and-loss statement and two months of business bank statements can be decisive when the most recent return is no longer representative of the business.
Local conditions change the urgency. In Henrico County, the median sale price was approximately $410,000 in 2025, according to Redfin’s Henrico County housing market tracker. Competition remains concentrated around well-priced homes in Richmond, Midlothian, and Fredericksburg, while inventory and price pressure can vary block by block. A statewide data point also matters: Virginia’s $832,750 baseline conforming limit gives qualified buyers broad purchasing capacity across much of the Commonwealth, but a payment that strains reserves is not a winning strategy.
Before selecting any broker, confirm licensing through the NMLS Consumer Access database. This is particularly relevant for searchers who find Colonial 1st Mortgage in older Richmond and Glen Allen directory listings. The Better Business Bureau lists the business as out of business, its domain does not resolve to a functioning mortgage company site, and its most recent Yelp review was posted in 2017. Verify current licensing status before making contact.
FAQ
Can I get a self employed mortgage in Virginia with only one year in business?
Possibly. One year may work when prior work history is in the same field and the selected program permits it. Two years generally provides more options.
Do tax write-offs hurt mortgage approval?
They can reduce qualifying taxable income. Some documented add-backs may be allowed, but a broker must calculate them under program rules.
What credit score do I need?
A 620 FICO is a common conventional starting point, 580 may fit FHA with 3.5% down, and stronger scores can improve pricing. Program and investor rules vary.
Can a soft credit pull approve me?
No. A soft pull can support early planning and prequalification. Final approval requires full review of income, assets, property, and other documentation.
Are bank statement mortgages only for poor credit?
No. They are documentation-based non-QM options for borrowers whose deposits show income more clearly than tax returns do.
How much reserve money should I have?
It depends on the loan and property. Two months may be sufficient in some conventional scenarios, while jumbo and non-QM files may require six to 12 months.
Can I use a VA loan if I am self-employed?
Yes, if you meet eligibility, occupancy, income, and credit requirements. Business income must still be documented and stable.
Why use a broker instead of one institution?
A broker can compare multiple wholesale investors for program fit, pricing, documentation standards, and speed rather than offering one fixed shelf of choices.
The best next move is not guessing which program fits. Bring the returns, bank statements, and current business picture to a conversation early enough to protect your credit, plan your offer, and choose terms that leave your business with breathing room.
Duane Buziak, Mortgage Maestro | NMLS: 1110647 | Licensed in VA · FL · TN · GA | UWM PRO ELITE 2025 | UWM Top 20 Purchase LO Virginia 2025 | UWM Speed to Close Industry Leading 2025 | Scotsman Guide Top Originator 2025 & 2026 | VA Broker of the Year 2024-2025 | Top 1% Nationwide | Coast2Coast Mortgage | DuaneBuziakMortgageMaestro.com | duane@coast2coastml.com | (804) 212-8663
Legal disclaimer: This material is for educational purposes only and is not a commitment to extend credit or an approval. Terms, rates, payments, eligibility, and documentation requirements may change and are subject to underwriting, appraisal, title review, and applicable program guidelines. Equal Housing Opportunity.
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.