Financing in Fort Lauderdale>Question Details

jasonboyer99, Home Buyer in Fort Lauderdale, FL

I'm trying to get a mortgage as (newly) self employed. Any advice?

Asked by jasonboyer99, Fort Lauderdale, FL Thu Jun 7, 2012

Hi, I'm interested in a multi-family property. I have excellent credit and could pay a down payment up to 50% of the asking price of $145,000, but I'm (newly) self employed. I've contacted one lender and was told that I would need 2 years of history as self employed in order to qualify for a mortgage.
Any advice?
Thank you.

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Answers

13
Try a credit union. They will lend their own money and make a business decision. Doesn't look like much risk with 50% down because you will have a lot of skin in the game.

Other typical lenders MUST have you FIT exactly into the criteria that will allow them to immediately sell off the mortgage the day after it closes. If you don't FIT then they can re sell it so you'll be denied.

Try http://www.GTEFCU.org and other credit unions.

Also there is the NACA mortgage, maybe that would work, just be sure to select your Realtor FIRST and have your REALTOR sign you up on NACA or she will have to pay a large referral fee. Take a look:
https://www.nacalynx.com/nacaWeb/purchase/purchaseProgram.as…

Hope this helps.

All the best,
Alma Kee
http://www.SoldOnTampa.com
2 votes Thank Flag Link Fri Jun 8, 2012
Thank you for your advice. I'll give it a try.
Best,
Jason
Flag Sat Jun 9, 2012
Hi Jason,

I may have some portfolio products that would work for you and be a reasonable rate as opposed to private money lenders which might be your only other option. Some of these options involve using accumulated assets in lieu of income, but others do not. Let me know if you would like more info.

I also offer credit score improvement programs for free while we work on your mortgage.

If you like my answer above, consider clicking on a “Thumbs Up” or “Best Answer”

Regards,

Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist

Direct: 240-752-7549 Cell: 301-651-7822
Email: robertlh66@verizon.net
NMLS# 695929

Rate quote or live chat with me at the link below:

http://www.loansfromrob.com/quote/
0 votes Thank Flag Link Fri Feb 28, 2014
Just recently there have been some bank statement products that have allow you to show deposits as income. Credit Unions are not going to give you a break on income.

let me know if I can help

Thanks

Ryan
0 votes Thank Flag Link Fri Feb 28, 2014
ryan - my wife has had her own cleaning business for over 6 years... no problem on that income for self employment...but she has also graduated from college with Masters in Counseloing and is a 1099 counselor at her current practice.... this is since last november..... can she use this income....???
Flag Sat Jan 30, 2016
Bankers look for stability in employment.
So, if you are in the same field as before (when you worked as an employee) - after about a year
some lenders might consider you for a regular or their portfolio loan.
These lenders will not be the big banks, but rather credit unions or mortgage brokers.
Otherwise, 2 years employment is a very common requirement for a self employed person.
Also - as a self-employed person, your income will be calculated as the average of those 2 years - and if the 2nd year was lower, than the income will be calculated on a lower 2nd year number...

Right now, with 50% down, you'll be able to still buy with private money.
Your agent will be able to help you find a good private lender.
See if the high interest rate would be working for you - and remember that this loan is a balloon.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Mon Dec 23, 2013
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nlms #328117

Doing your due diligence and getting answers to these questions will help you weed out brokers and save you time.

Are you a direct lender or a broker?
Are you lending your own money or investors'?
What types of properties do you fund most?
Where are most of your loans made?
Can I use my own Title Company and escrow?
What do you typically charge (closing costs and interest)?
Can you give me an example of a deal that best represents your niche?
To what extent does an exit strategy play a part in your approval decision?
How long does it take you to prepare documents and to fund my deal?
Can you go off of a Broker Price Opinion for value?

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0 votes Thank Flag Link Thu Dec 19, 2013
Um. You don't have to yell.........
Flag Mon Feb 10, 2014
Self-employed borrowers must complete Internal Revenue Service Form 4506-T, which allows lenders to request tax transcripts. Lenders are required to wait until the tax returns have been recorded by the IRS and must receive them directly from the IRS rather than from loan applicants.

Many self-employed individuals report expenses on their taxes in order to reduce their tax liability, but this can backfire when they apply for a mortgage.

"Self-employed people typically report their gross income minus expenses to generate a net income," says McDonough. "For tax purposes, it may be beneficial to have net income as low as possible, but the net income is the number used for income qualification."
0 votes Thank Flag Link Thu Dec 19, 2013
It doesn't matter how much you are putting down 50%, 70%, or more, you still need 2 years of history as self employed. I would suggest to get owner financing, I do have some property with owner financing, if you can't wait. Please call me. Thank you for choosing me as your Real Estate Profetional.
Esther Rabayeva
Coldwell Banker
Esther Rabayeva
Cell: 954-588-0099
EsteStar777@Gmail.com
http://www.ERRealtorInSFl.com
http://www.facebook.com/EstherRabayeva
0 votes Thank Flag Link Wed Oct 3, 2012
Contact Lisa Rioux (she OWNS the company!); cell# 561-400-9478 She deals with local and out of state money sources AND private lenders. IF the deal is doable, she will bring you to the closing table. Please let her know I suggested you call her.
Thanks

Meir Aloni & Team
CRS (Certified Residential Specialist)
CDPE (Certified Distressed Property Expert)
RECS (Real Estate Cyberspace Society)

Successfully selling Broward County since 1986!
0 votes Thank Flag Link Wed Oct 3, 2012
Good afternoon jasonboyer99,

Lenders will want to see that you are Self-Employed for a minimum of 2 years and most prefer at least 3 years. The Lender will average your net income for the past 2 years from your Federal Tax returns to determine the qualifying income.

Two years. That's the rule. No exceptions.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Thu Sep 27, 2012
Please call Ruth she can answer all of your questions.

Ruth Tikasingh
Mortgage Consultant
(786) 556-7956
Wells Fargo Home Mortgage | 7403 Miami Lakes Dr | Miami Lakes, FL 33014
Tel (786) 556-7956 | Cell (786) 556-7956 | Fax (855) 209-4159
Ruth.Tikasingh@wellsfargo.com

Decorus Realty
16850 Collins Ave # 105
Sunny Isles, Fl 33160
Esther Rabayeva
Cell: 954-588-0099
Office: 305-944-8181
Fax: 305-940-0698
EsteStar777@Gmail.com
http://Esther.DecorusRealty.com
0 votes Thank Flag Link Thu Jun 7, 2012
Look for some hard money or owner carry to make your purchase now and then refinance after you have two years federal tax returns to show your income. There are not many options unless you can document your ability to afford a loan with2 years tax returns. You can that the Frank Dodd mortgage reform bill for the some of these changes and the peorple who abused the process in the past.
0 votes Thank Flag Link Thu Jun 7, 2012
For a traditional mortgage you’ll need 2 years unless 1) you have a contract that provides proof of income, 2) purchased an existing business in a field in which you have experience. Another option might be a mortgage that is not sold on the secondary market, called portfolio loans, sometimes offered by local credit unions or small banks. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Thu Jun 7, 2012
Jason,

I know a lender that I have closed several loans with this year with buyers being self employed for less than one year. Please give me a call or email so we can discuss this a little further and I can set you up with my guy.

Joe Stafford
Keller Williams Realty
954-260-3229
JoeWStafford@Gmail.com
0 votes Thank Flag Link Thu Jun 7, 2012
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