Creative Mortgage Solutions
For Self-Employed Borrowers and Real Estate Investors
From Florida to California, we have alternative lending options
for self-employed and investor borrowers that requires little to no income documentation
Stable Income? Check.
As a W-2 employee, your consistent paychecks and verifiable employment make qualifying for a mortgage faster and easier. Discover loan options designed for salaried professionals today!
Financing That Broadens Your Horizon
With over 20 years of mortgage experience, and countless scenarios, our one goal is to provide smarter financing solutions, regardless
of your real estate experience
Mortgage Rates
Understanding how mortgage rates work is essential for any borrower seeking financing, whether you are a W-2 employee, self-employed professional, real estate investor, or first-time home buyer. Mortgage rates represent the interest you pay on borrowed funds, expressed as an annual percentage, and they directly determine your monthly payment and total loan cost. At Horizon Lending Services, we help borrowers across Texas, California, Florida, and nationwide navigate rate structures and secure competitive terms, even when traditional lenders turn you away.
The process of evaluating and securing favorable terms requires understanding what moves rates, how lenders price different loan types, and which strategies apply to your specific situation. Whether you need a bank statement loan, DSCR investment property financing, or jumbo financing up to five million dollars, the fundamentals remain the same: knowing how to read rate quotes, compare offers, and lock in terms before closing.
Step 1: Understand What Drives Mortgage Rates in Your Market
Mortgage rates fluctuate based on broader economic conditions, Federal Reserve policy, inflation, and bond market performance. However, your individual rate quote depends on specific factors lenders assess: your credit profile, loan-to-value ratio, down payment amount, loan type, and the property itself. For self-employed borrowers and investors working with Horizon Lending Services, your income documentation method also influences pricing. A bank statement loan or 1099-based loan may carry a different rate structure than a traditional W-2 application because the underwriting approach differs.
Your personal circumstances matter more than national headlines. If you are a real estate investor seeking DSCR financing based on rental income, lenders will price your loan differently than a primary residence purchase. If you are a freelancer or business owner using bank statements to document income, expect specialized pricing that reflects the alternative underwriting process. Understanding these distinctions helps you anticipate rate ranges before speaking with lenders and identify which loan program fits your financial profile.
Step 2: Compare Rate Quotes and Lock Your Terms
Once you have identified the loan program that matches your needs, request rate quotes from multiple lenders. A rate quote should include the interest rate percentage, the annual percentage rate (APR), loan term, discount points if applicable, and the expiration date of the quote. The APR is more comprehensive than the interest rate alone because it includes fees and closing costs, giving you a true comparison between offers. When Horizon Lending Services provides a rate quote, we disclose all components so you understand the complete cost of borrowing.
Rate lock protection freezes your quoted rate for a set period, typically 30 to 60 days, preventing market fluctuations from increasing your cost before closing. This is especially valuable for self-employed borrowers and investors whose loan approvals may take longer due to documentation review.
Once you select an offer, you can lock your rate. The lock period protects you if market rates rise before your loan closes. For self-employed professionals, real estate investors, and other borrowers who may need additional underwriting time, a longer lock period provides peace of mind. Horizon Lending Services works with you to time your lock strategically, balancing rate certainty against the time your specific loan program requires for approval.
Frequently Asked Questions
What is the difference between interest rate and APR?
The interest rate is the percentage you pay annually on the loan principal, while the APR includes the interest rate plus all fees, closing costs, and points expressed as a percentage. The APR gives you a more complete picture of the true cost of borrowing and is the better number to use when comparing offers between lenders.
Do self-employed borrowers pay higher mortgage rates than W-2 employees?
Rates depend on the loan program, not automatically on employment status. Self-employed borrowers using bank statement loans or 1099-based documentation may see different pricing than traditional loans, but Horizon Lending Services specializes in competitive rates for non-traditional income earners. Your credit, down payment, and loan-to-value ratio matter more than your employment type.
How long can I lock a mortgage rate?
Rate locks typically last 30, 45, or 60 days, though longer periods may be available. For complex loan programs like DSCR financing or bank statement loans, a 60-day lock is common because underwriting takes more time. Horizon Lending Services can help you choose a lock period that matches your approval timeline.
What are discount points, and should I buy them?
Discount points are upfront fees paid at closing to lower your interest rate, with each point typically costing 1 percent of the loan amount and reducing your rate by 0.25 percent. Whether to buy points depends on how long you plan to stay in the home and whether your monthly savings exceed the upfront cost. Horizon Lending Services can calculate the breakeven point for your specific scenario.
Are mortgage rates better for jumbo loans or investment property financing?
Jumbo loans and DSCR investment property loans are priced separately from conventional financing and carry their own rate structures based on the property type, loan purpose, and your financial profile. Investment property loans based on rental income (DSCR) often have different terms than purchase loans. Horizon Lending Services offers jumbo financing up to five million dollars with competitive rates tailored to each loan type.
Can I refinance if I am self-employed or a real estate investor?
Yes, refinancing is available for self-employed borrowers and investors, though it follows the same alternative documentation rules as initial financing. If you used bank statements or 1099 forms for your original loan, your refinance will likely use the same methods. Horizon Lending Services can review your current loan and recommend refinancing options if market conditions or your financial situation improve.
DSCR (Debt Service Coverage Ratio)
Maximize your portfolio potential with Non-QM loans designed for first time or savvy investors; no tax returns, just smart financing.
Self Employed
Our Self-Employed Non-QM Loans are designed for entrepreneurs, freelancers, and business owners who don’t fit the traditional lending mold. Qualify using bank statements, 1099s, a P&L or asset-based income. No Tax Returns or W2’s Required! 1 Year Self-Employed History Allowed!
VA
With a VA home loan, eligible veterans, active-duty service members, and surviving spouses can buy or refinance with zero down payment, no PMI, and competitive interest rates. Whether you’re purchasing your first home or refinancing, we make the process simple, fast, and tailored to your service.
Jumbo Loans
Unlock high-value properties with creative jumbo loan solutions up to $5 million; perfect for self-employed borrowers, luxury homebuyers, and investors with unique income streams. We go beyond the traditional box to deliver flexible financing that fits your vision.
First Time Buyer
Whether you’re eyeing an FHA loan with low down payment options or a Conventional loan with competitive rates, we help first-time home buyers navigate the path to homeownership with confidence. Get expert guidance, flexible financing, and personalized support every step of the way.
Cash-Out Refinance
Consolidate high-interest debt into one low monthly payment; using the equity you’ve already built. Pay off credit cards, personal loans, or medical bills, update your home, and regain control of your finances with a streamlined, cost-effective solution backed by competitive conventional rates.
We can’t thank Scott Simmons enough for all his help during both our original purchase of our home, as well as our recent refinancing. Scott was able to get us an incredible rate and was extremely detailed and explanatory the entire way. We, of course, had rookie questions being first-time home buyers, but he made himself available to answer and explain any of our questions and made helpful suggestions, as well as great advice given our individual situation. I highly recommend Scott for your mortgage needs!
Sarah Lati
Have always had a great experience with Horizon Lending Services. Scott and his team are the BEST! They helped us in 2021 with a refinance of our first home. Then this year they helped us with getting a loan for our property! Scott was patient and always willing to go over everything multiple times to ensure we understood everything. Kept us updated on status’ as well as just to check in.
Samantha Mellott
Just recently had the experience of working with Marcus on a loan for an investment property. Not only did he help me find the lowest cost strategy to purchase the property, he kept me updated, helped jumped through the various hurdles that came up to make sure we didn’t have any delays and the purchase was as smooth as possible. Marcus is an incredible lender and is my go to for any and all loan questions or needs
Richard Berman
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