As the family grows, we are outgrowing the home, that is our main reason for wanting to move. I do not work out of my house, so that is not an issue. We actually wouldn't be selling it at a loss as we have owned it for six years and got it at a pretty good price (It would be a fairly small gain though).

If we truly had to, we could stick around for two years, but that is not what we prefer.

My original thought was to put 20% down on a different house, thus allwoing us to have plenty in savings as my business continues to grow.

I am not the expert in this field but it appears that if you go through the normal chanels that the underwriteres will not approve you because of the guidelines. I have attached the fha guidelines so you understand what you are running up against. http://www.fha-guidelines.com/self_employed_guidelines.htm

So if you can not do it within the normal process is there other ways you can do it? May be you can try the refinace option of obama's stimulius program, look at http://makinghomeaffordable.gov/eligibility.html to evaluate that option.

The other option there might be is working with your bank to use your relationship to assist you in getting funds. If that does not work there may be some possiblites under the SBA Small Business Administration and there loan prorgrams. Check out the programs with a sba lender. The banks I know that are working sba loans are : Associated and US Bank. I am sure there are other banks but thats a place to start. Attached is some information about the sba and their programs.

Wish you luck

Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,Wisconsin

As a CFP, I fully understand that the best option would have been to sell the house before leaving. That being said, we were unable to sell it at the time (Winter and a horrile market), and business didn't allow me to stay put at my old job.

Again, I appreciate the answers, but we are now in a predicament and I was wondering if there were other options that we could look at.

I was suggesting a Home equity line of credit rather than a cash-out refinance...if you were going to stay put.

Or you could sell your home ...take the equity...invest it... and then rent a home until your business has developed a track record and you are ready to purchase.

Unfortunately, hindsight is 20/20. The fact is I am now self-employed so I can't go back and cash out. If I could, I would. We actually tried selling the house last year but were not successful.

How would a home equity line of credit help me here? Would I use that to pay for a new home? I don't want to have two houses moving forward and worry about renting.

RC- You needed to CASH OUT prior to leaving your previous company... when you could show that you qualify with W-2's tax returns and bank statements.

think about it...you just moved into the "High Risk" category.
How can a lender possibly determine your eligibility/qualifications? You just opened your door a few months ago.

Rule of thumb- You need to provide two yeras tax returns to prove that you earn the $ to qualify for the loan - Generally the lender will average your net income from the last 2 years to calculate your ratios.

You would need a NO DOC loan at this point. If there's still one out there, I am sure the rates are prohibitive.

What about a home equity line of credit? The criteria for that is often less stringent.

Rockchalk,

Conventional and FHA will require2 yr history self employed. Just a little more risk here. you local bank might a viable option as well as a credit union.

Lenders and being self employed has never been an easy task....they act as though you want to steal rather than borrow the money...we hear you ! We would suggest calling some mortgage brokers as opposed to bankers and see if they have any programs that may allow for some flexibility. If you need names, we are happy to supply them. Good Luck !

My wife does not work, so no.

hi......you are fighting a tough battle.......you said we......does that eman wife maybe can do the loan on her own?......bob mcclure- success motgage partners- plymouth, michigan....