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Self-employed mortgage programs offer flexibility in property types, often financing properties that conventional lenders won’t. However, not all properties qualify, and some come with additional requirements.

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Eligible Property Types

Single-family residences — The most straightforward property type. Detached homes, townhomes, and PUDs (planned unit developments) typically qualify without issue. Condominiums — Warrantable condos qualify with most lenders. Non-warrantable condos (those that don’t meet Fannie Mae guidelines) are also eligible with many lenders offering self-employed mortgages—a key advantage over conventional financing. 2-4 unit properties — Duplexes, triplexes, and fourplexes qualify, whether owner-occupied or investment. Rental income from other units may help with qualification. Rural properties — Homes on acreage typically qualify, though very large parcels (40+ acres) may face restrictions or require additional review.

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Property Types with Restrictions

Property TypeTypical Availability
Single-familyWidely available
Condo (warrantable)Widely available
Condo (non-warrantable)Many lenders
2-4 unitsMany lenders
Rural / acreageMany lenders, size limits may apply
Mixed-useLimited lenders
Manufactured homesLimited lenders
CondotelsLimited lenders
Co-opsRare

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Non-Warrantable Condos

Conventional lenders avoid non-warrantable condos, but many self-employed mortgage lenders accept them. A condo may be non-warrantable due to:
  • Single entity owning too many units
  • High investor concentration
  • Pending litigation against the homeowners association (HOA)
  • Insufficient reserves
  • Commercial space exceeding limits
Expect slightly higher rates or down payment requirements for non-warrantable condos.

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Mixed-Use Properties

Properties with both residential and commercial space (like a storefront with apartment above) qualify with some lenders offering self-employed mortgages. Typical requirements:
  • Residential space must be primary use
  • Commercial portion limited to 25-40% of total square footage
  • Borrower may need to occupy residential portion

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Ineligible Properties

Most lenders offering self-employed mortgages won’t finance:
  • Vacant land
  • Commercial-only properties
  • Properties in disrepair
  • Log homes or dome homes (with some exceptions)
  • Houseboats or floating homes
When in doubt, ask your lender early—property eligibility issues discovered late in the process cause costly delays.