By Bill Lyons | Published on May 4, 2023
TABLE OF CONTENTS

    As a self-employed individual in San Diego, obtaining financing to buy real estate can be challenging. However, the growing community of entrepreneurs, business owners, gig-workers, and self-employed individuals in San Diego can access alternative financing options such as Bank Statement Loans to make their dream of homeownership a reality.

     

    KEY TAKEAWAYS
    • Self-employed individuals face challenges when obtaining traditional financing for real estate purchases in San Diego.
    • Bank Statement Loans are an alternative financing option designed specifically for self-employed individuals.
    • San Diego’s real estate market is competitive, with a median home value of $774,900 as of February 2023 and a low inventory of available homes for sale.
    • Owning real estate provides many benefits, including appreciation, tax benefits, and building equity.
    • Organizations like the San Diego Entrepreneurs Exchange, the San Diego Small Business Association, the San Diego chapter of the Entrepreneurs Organization (EO), and the San Diego Self Employed Professionals Network provide resources and support to help self-employed individuals navigate the challenges of buying real estate in San Diego.

    The Challenges of Buying Real Estate as a Self-Employed Individual in San Diego

    Self-employed individuals often have difficulty obtaining traditional financing for real estate purchases in San Diego due to the lack of a consistent income stream. Without a W-2 or pay stub, lenders may view self-employed income as unreliable and risky. This can make it difficult for self-employed individuals to meet the strict requirements of conventional mortgages.

    As of June 2022, the self-employed population in San Diego was 13.7% of the total labor force, which is higher than the national average of 10.3%. Many of these individuals may be interested in pursuing homeownership in San Diego.

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    Alternative Financing Options for Self-Employed Individuals

    Bank Statement Loans are an alternative financing option designed specifically for self-employed individuals. Instead of relying on traditional income documentation like W-2s and pay stubs, Bank Statement Loans use bank statements to verify income. This allows self-employed individuals to show proof of their income and qualify for a mortgage.

    San Diego Real Estate Market

    San Diego’s real estate market is competitive, with a median home value of $774,900 as of February 2023. Over the past year, home values in San Diego have increased by 18.3%. The low inventory of available homes for sale has contributed to a highly competitive market for buyers.

    Benefits of Owning Real Estate

    Despite the challenges of buying real estate as a self-employed individual in San Diego, owning real estate provides many benefits. One of the most significant benefits is appreciation. Real estate is an asset that tends to increase in value over time, meaning owning a property can be a sound investment. Additionally, owning real estate provides tax benefits through mortgage interest deductions, lowering overall tax liability. Finally, every mortgage payment increases the property’s equity, and the property value is likely to increase over time as well.

    Resources for Self-Employed Individuals

    Organizations like the San Diego Entrepreneurs Exchange, the San Diego Small Business Association, the San Diego chapter of the Entrepreneurs Organization (EO), and the San Diego Self Employed Professionals Network provide resources and support to help self-employed individuals navigate the challenges of buying real estate in San Diego. These organizations can offer guidance on alternative financing options, connect self-employed individuals with other professionals in the community, and provide educational resources to help self-employed individuals succeed in their business ventures.

    Conclusion

    Owning real estate as a self-employed individual in San Diego is achievable through alternative financing options like Bank Statement Loans. Despite the competitive market and higher home values, owning real estate provides significant financial benefits and stability for self-employed individuals. With the support of organizations and resources in San Diego, self-employed individuals can achieve their dream of homeownership and enjoy its benefits.

    Apply for a San Diego Bank Statement loan with Griffin Funding today, or contact us to learn more about our loan offerings to find the best option for you. 

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    Bill Lyons

    Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 22 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 10 years in business.