Mortgage loans for self-employed?

I'm self-employed and make pretty good money and my three credit scores are all above 700 (average 760). I currently pay $1,500 rent per month, so obviously, I can afford a mortgage payment (including property taxes and insurance) that's equal to my monthly rent payment. But I was shocked when I applied... show more I'm self-employed and make pretty good money and my three credit scores are all above 700 (average 760). I currently pay $1,500 rent per month, so obviously, I can afford a mortgage payment (including property taxes and insurance) that's equal to my monthly rent payment. But I was shocked when I applied for a mortgage loan and was told the amount that I qualify for -- it's WAY less than what I thought I'd qualify for and the amount I actually qualify for can't buy anything decent in my area of the country (southern California). It turns out that my only problem is that I'm self-employed and work at home, so I take a lot of tax deductions for business expenses and even household expenses (phone, utilities, car and rent), and when all is said and done, lenders think that I don't make enough money to qualify for a mortgage loan. It seems really unfair that they look at net income for self-employed people, but they look at gross income for everyone else who has the same (or even more) monthly expenses than I do.

So what am I to do now? Are there any options for me? Getting a co-borrower is out of the question, since I'm single and nobody in my family is financially able to help. Are there any mortgage lenders that understand self-employment income? If anyone knows of any lenders that have loan programs for self-employed people, PLEASE let me know.
Update: Renu, that web site was useless. It didn't explain anything and only had links for small personal loans and loans for people with bad credit (not my situation). Madison, an explanation of fixed rate mortgages isn't what I'm looking for. Also, the web site you gave me only had links for loans for... show more Renu, that web site was useless. It didn't explain anything and only had links for small personal loans and loans for people with bad credit (not my situation).

Madison, an explanation of fixed rate mortgages isn't what I'm looking for. Also, the web site you gave me only had links for loans for people with bad credit (not my situation).

What I NEED is a link to a lender who offers loans tailored specifically for people who are self-employed, such as no income verification loans. Hopefully, somebody will be able to give me such information.
2 answers 2