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Jim, Renter in

Is there such a thing as a "no paystubs/yes tax returns" newly self employed mortgage?

Asked by Jim, Sat Jan 12, 2013

Fledgling part-time investor w/2x 4plexes in LA. Laid off from FT job but still have positive cash flow from the two buildings. I have a healthy cash reserve but am starting a consulting business.

The mortgage broker I have always worked with said I'd need to be self-employed for two years to be approved for a loan. Trying to see if there are other options. The details:

-want to buy another tri- or fourplex in LA, or even possibly a commercial property (5 ) if that's viable/feasible
-want to live in one of the units (owner-occupy)
-have substantial cash reserves (could cover a few years of a loan payment, no sweat)
-have excellent (770 ) credit
-can provide awesome past two year tax returns, no paystubs, and no confirmation of employment since I'm newly self-employed.
-want to put as little as I can down. Have read about 40% down (60% LTV) no doc mortgages, but hoping for lower $ down.

Anyone hear of products that may fit the bill? Or am I stuck with 60% LTV?

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Answers

1
How new are you newly self-employed? I often recommend FHA loans for owner occupied 3/4 unit purchases but since your self-employed, it's probably the wrong option.

If you received at least 6 months of self-employment in 2012 and it's in the same line of work as your previous work, Fannie Mae will allow you to annualize your business income in 2012. The income will likely be low, but it's worth a shot. Fannie Mae's My Community Program will allow you to put a smaller down payment, but the larger the mortgage, the higher your income needs to be.
0 votes Thank Flag Link Sat Jan 12, 2013
Hi Keane,

Thanks for the answer; yup, am newly self employed (as of 2 months ago). It is the same line as my previous work. I will check out the "My Community" program. Thanks!
Flag Tue Jan 15, 2013
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