I too was 1099'd in the past, and knowing I was going to buy a home, had to bite the bullet and eliminate many of the deductions afforded me by the IRS. There are some cool things you can keep in mind though, we can add back in your "Depreciation" found on your Schedule C. So maybe you can change how you claim those deductions and serve both purposes. Just a thought. Let me know if you need any further assistance by shooting me a email or message.
Best of Luck!
I've seen many applicants with your situation many times. Unfortunately, most people don't realize this until it's too late.
It's a catch 22 when you write off legal deductions, but then you don't qualify for a mortgage. I've had to turn away friends, family, and even industry professionals because of this.
Basically, you have two choices.
You can amend your last 2 tax returns, claim less deductions, and pay your tax liability.
Wait until you file 2014 and 2015 tax returns with less deductions, ,claim enough income to qualify, and pay your tax liability.
Another option is to work with a private money lender in your area. Be prepared to put at least 10% down and pay a higher rate.
Please call me with any questions.
Good Luck to you.
Vino Alonzo, Loan Officer
First Cal Mortgage
Now you need to walk away from the bank and go to the lender your REALTOR recommended.
A local portfolio lender is the solution to the situation you created.