Brooklyn's ownership stock leans toward houses with more than one door. Rowhouses and brownstones in Park Slope, Bed-Stuy and Crown Heights, attached two- and three-families in Bay Ridge, Dyker Heights and Sunset Park, and detached homes in Marine Park and Midwood sit alongside newer condo towers in Downtown Brooklyn and Williamsburg and prewar co-ops in Brooklyn Heights and Ditmas Park.
For a business owner, that variety is useful. The building you choose can open up rental income, or it can add a layer of building review. Knowing which before you make an offer saves weeks.
Why do two- to four-family homes matter for self-employed buyers?
On a multi-unit house you'll live in, lenders may count part of the expected or existing rent from the other units toward your qualifying income. For someone whose Schedule C shows modest net profit, that added income can change the math on a two-family in Bay Ridge or a three-family in Bushwick.
How much rent counts, and what proof is needed, varies by program. Existing leases, a rent schedule from the appraiser, and the house's rental history all come into play. Non-QM programs and conventional loans treat this differently, so compare both.
Bring copies of current leases and rent deposits if the house is already tenanted. Lenders want to see the income is real.
What about Brooklyn's newer condo buildings?
Many of the condo towers along the waterfront and around Downtown Brooklyn are recent construction. Lenders review the building itself, and a project with a high share of investor-owned units, unsold sponsor units, commercial space or pending litigation may be classed as non-warrantable.
Non-warrantable condos can't be sold to Fannie Mae or Freddie Mac, so they're often financed with portfolio or non-QM loans. Some bank statement programs list non-warrantable condos as eligible, which can line up neatly for a self-employed buyer already headed down that path.
Example: a Brooklyn contractor eyeing a two-family
A Brooklyn electrical contractor writes off his van, tools and subcontractor costs, so his returns show far less than his business deposits. He's looking at a two-family in Dyker Heights with a tenant already in place. An advisor might compare a bank statement program, using his business deposits less an expense factor, with a conventional file that adds back depreciation, and in either case look at how much of the tenant's rent could count.
What will closing cost in Brooklyn?
Brooklyn is Kings County, so NYC mortgage recording tax applies on houses and condo units: about 1.8% of the loan under $500,000 and about 1.925% at $500,000 or more. A Brooklyn Heights or Prospect Lefferts co-op purchase avoids that tax because co-op loans aren't secured by real property.
Purchases at $1 million or more trigger New York's 1% mansion tax, which is common for brownstones. The 2026 one-unit conforming limit in Kings County is $1,249,125. Limits for two- to four-unit properties are higher, but check the current figure with your advisor.
Bank statement loan or 1099 mortgage: which fits your Brooklyn business?
Brooklyn has a deep bench of owner-operators. A few common scenarios and where they usually start:
- General contractors, renovators and tradespeople: vehicle and equipment write-offs shrink net income, so bank statements often read better. Depreciation can sometimes be added back on a conventional file.
- Restaurant, café and retail owners: deposits run through a business account, so a business bank statement program with an expense factor is a common fit. A CPA letter may support a lower expense factor.
- Photographers, designers, musicians and other creatives: income arrives in uneven bursts. Twenty-four months of statements can smooth out lumpy years.
- Independent consultants and tech contractors paid on 1099s: a 1099 program may use gross earnings less a set expense factor.
- Real estate agents: commission 1099s or bank statements both can work, depending on how expenses are booked.
Bank statement loan requirements in Brooklyn
A bank statement loan in Brooklyn follows the same market rules as anywhere else, with a local twist: on a multi-family, the lender may be reading two income streams at once, your deposits and your tenants' rent. Expect a lender to look at:
- 12 or 24 months of personal or business statements. Business deposits are reduced by an expense factor set by your business type; a CPA letter can sometimes support a lower one.
- Transfers between your own accounts and one-off deposits, which are typically excluded. Large deposits may need a short explanation.
- Usually two years self-employed, though some lenders accept one year with prior experience in the same work.
- Leases or an appraiser's rent schedule if rental income is part of the plan.
- Credit, down payment and reserves, which vary by program and run higher than on conventional loans.
Pull your statements and leases before you tour houses, then try the bank statement income calculator to see roughly what a lender might count.
Common questions
Can rent from a Brooklyn two-family help me qualify?
It can. When you live in one unit, many programs let a portion of the rent from the other units count toward qualifying income. The amount and the proof required, such as leases or an appraiser's rent schedule, differ by program and lender.
Are Brooklyn condos harder to finance when you're self-employed?
Not always, but newer buildings may be non-warrantable if many units are investor-owned or unsold, or if there's litigation. Those buildings usually need portfolio or non-QM financing, and some bank statement programs accept them.
Do I pay mortgage recording tax on a Brooklyn brownstone?
Yes. Houses and condo units in Brooklyn are subject to NYC mortgage recording tax, roughly 1.8% or 1.925% of the loan depending on loan size. Co-op purchases are exempt.
I've only been self-employed in Brooklyn for a year. Can I still buy?
Possibly. Fannie Mae allows less than two years if your most recent signed returns show a full 12 months of self-employment, and some bank statement lenders accept one year with prior experience in the same line of work. Requirements vary.
Will the mansion tax apply to my Brooklyn purchase?
If the purchase price is $1 million or more, New York's 1% mansion tax applies, and it's paid at closing. Plan for it in your cash to close so it doesn't eat into the reserves a lender wants to see.
Can a 1099 employee get a mortgage in Brooklyn?
Yes, independent contractors may qualify. A conventional loan uses net income from your returns, while a 1099 mortgage program may use gross 1099 earnings, commonly from one to two years, less a set expense factor. For a Brooklyn consultant or real estate agent with heavy deductions, that difference can be large. Requirements vary by lender.
What is the jumbo mortgage limit in New York City?
A loan becomes jumbo when it exceeds the conforming limit. For 2026 the one-unit conforming limit in Kings County and the rest of the city is $1,249,125, per FHFA, and two- to four-unit limits are higher. Many brownstone purchases cross that line, and jumbo lenders set their own rules for self-employed documentation and reserves.
Which bank is best for self-employed mortgages?
There isn't one. Many retail banks qualify you only on tax returns, while bank statement and 1099 programs mostly come from non-QM lenders. That's why some self-employed Brooklyn buyers work with a mortgage broker who can compare several lenders. Judge any option by whether it reads your income the way your business works and accepts the property you want.