$1.8M Jumbo Refinance Approved Using Schedule C and S-Corp Income

May 5, 2026
Steve Hasani
Closing

San Diego Jumbo Refinance Self Employed: $1.8M Case Study

San Diego jumbo refinance self employed borrowers often face unique challenges—especially when income structure changes mid-year. In this real case study, our team at First Liberty Funding successfully secured a $1.8 million refinance despite a complex self-employed income situation.

The Challenge: Transitioning Income Structures

This San Diego jumbo refinance self employed scenario involved a borrower who had been self-employed for years, reporting income through a Schedule C. Midway through the tax year, they transitioned their business into an S-Corporation.

While this is a common strategy for tax purposes, many lenders treat an S-Corp as a completely new business entity. This creates several issues:

Limited usable income history
Stricter underwriting guidelines
Increased likelihood of delays or denial

According to the Consumer Financial Protection Bureau, self-employed borrowers already face more complex income verification requirements, making situations like this even more difficult.

Our Strategy: Proving Income Continuity

Instead of allowing the business transition to create a roadblock, we focused on demonstrating continuity. For this San Diego jumbo refinance self employed file, the key was showing that nothing fundamentally changed about the business—only the tax structure.

Here’s how we approached it:

Verified that ownership remained the same
Documented that business operations and services were unchanged
Connected historical Schedule C income with current S-Corp earnings
Built a clear, stable income narrative for underwriting

By presenting a full financial picture, we were able to strengthen the borrower’s profile and align with jumbo loan guidelines.

The Outcome: $1.8M Jumbo Refinance Approved

With the right approach, this San Diego jumbo refinance self employed loan was successfully approved.

Loan Highlights:

Loan Amount: $1.8 million
Monthly Savings: $700+
Closing Costs: $0 out of pocket

This case highlights how proper loan structuring can turn a complicated scenario into a successful closing.

Why This Matters for Self-Employed Borrowers

Many borrowers assume that changing their business structure will prevent them from qualifying. However, this San Diego jumbo refinance self employed example proves otherwise.

Here are the key takeaways:

Transitioning from Schedule C to S-Corp does not automatically disqualify you
Lenders need a clear and complete financial story
Working with an experienced mortgage team can make a major difference

For more information on mortgage guidelines and loan limits, you can visit the Federal Housing Finance Agency.

According to the Consumer Financial Protection Bureau, self-employed borrowers face more complex income verification requirements. You can learn more about mortgage qualification requirements here:
https://www.consumerfinance.gov/ask-cfpb/what-do-i-need-to-qualify-for-a-mortgage-en-1795/

Thinking About a Jumbo Refinance?

If you’re self-employed and considering refinancing, don’t assume your situation is too complex. This San Diego jumbo refinance self employed case shows that with the right strategy, strong approvals are still possible.

If you’re exploring a San Diego jumbo refinance self employed scenario, you can learn more about available options here:
https://flfcorp.com/jumbo-loan-san-diego/

Contact First Liberty Funding to explore your options and see what you may qualify for.

Disclaimer

This is not a commitment to lend. All loans are subject to underwriting approval. Rates, terms, and availability are subject to change. Equal Housing Opportunity.