posted by Phyllis Crosby, Realtor GRI - Re/Max Top Notch Associates, Tampa, Florida

You sound like a smart business woman, and to me it looks like you are doing a great job building your building blocks of life. Step back and assess your situation - why not rent for another year and build your credit up to a better score. Your business is still new and although you've have had a great year - see what the next year or two brings...I am counting on financial stability from your business for you!


We are all hopeful for an extension of time of the $8,000 First Time Homebuyer tax credit. I would relax, and not try to beat that deadline- you may have to pay higher interest for lower current credit score...even if you could find a mortgage.

I would suggest to continue to lease a home, and build your business. A strong foundation is key!

Good Luck to you!

Jessica,

The Self Employment can probably stand on it's own - but will qualify you on 2008's taxable income and a YTD income statement to help support the file. The big issue is the FICO, why low? and why no score for Transunioin? If credit is thin - i.e. not three active credit sources - this will be your challenge. The 551 score must be related to open accounts that need to be resolved. I would work towards this to start - get that resolved and you should be able to get FHA financing approval by year end! You need to close by Nov 30th for the $8,000 credit - so you are very late in the game.

If you haven't started working with a mortgage lender - it is time to do so! Make sure you work with an FHA lender or strong FHA broker - most platforms have gone to a single FHA underwriting standard - but there are a couple low FICO lenders - just pretty high rates.

Good luck.

Hi Jessica,

I use a mortgage broker at Wells Fargo who I have done many FHA loans with my own customers buying properties. I find her very good and she can help you with your questions. Her name is Paula Switzer and she can be reached at 941-441-0180.

Good Luck,
Sara

FHA can allow for only 1 year proof of self employment income. The key word is that it "CAN" allow for it. It will be up to underwriter discretion - ultimately if the rest of your loan file is a-ok you could probably make it happen. A red flag in your question above was the qualifying credit scores - most lenders absolutely require a 620 minimum middle score. I only know of one lender that allows down to a 550 and to qualify you will need to have some very good explanations as to why your scores are as low as they are. With one bureau having no score, it also leads me to believe that you might have "thin credit" and may not qualify for a lenders credit guidelines regardless of how well you explain your past challenges, etc. It is worth a shot, but knowing the items I have explained ahead of time will save you in discussions with any lender you choose to speak with. I strongly suggest skipping the bank loan officer - you need a mortgage broker with a great lender relationship to make it happen for you.

Jessica,

Go to http://www.michaelsaunders.com and click on Mortgage to get in contact with our mortgage experts. They will be happy to sit down with you and explore all your financining options.

Willima Gregory, Realtor
Michael Saunders and Company
941-504-3404
williamgregory@michaelsaunders.com

Jessica,
Have you talked to anyone yet? I can give you the name of a very nice mortgage person who works with FHA and see what she can do for you. I know it feels so difficult but it sounds like you are working hard. lets just see what happens. Call me below.

Carol Aviles
Michael Saunders & Co
941-356-6777 direct cell
941-388-4447

Hi Jessica,

You really need to speak with a qualified FHA mortgage broker. I have a referral I can give you for the absolute best if you'd like to contact me.

My best,
Terri

Teresa M. Fellows
Broker/Associate
Waterside Realty LLC
tmf4257@mac.com http://www.floridawestproperties.com