Financing in 97006>Question Details

Dford, Home Buyer in 97006

Make good money being self employed for over 2 years. My wife works a normal job, while I run the franchises. OUr scores are around 800 FICO, but our

Asked by Dford, 97006 Fri Feb 18, 2011

"taxable income" is quite low due to deductions. Where can we get a mortgage?

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the introductory paragraph of "Discuss why being self-employed is the best option."
0 votes Thank Flag Link Thu Mar 14, 2013
Dford I suggest you gather your previous two years tax returns and speak with Mortgage Bankers or a Mortgage Brokers recommended to you by friends and colleagues, so they can accurately determine what you would qualify for in terms of a mortgage.
I suggest you don't go to one of the Big Box Banks because they will only want to squeeze you into their programs where as the others suggested will know the offerings of multiple institutions in the area.
I would also hold off on filing your 2010 returns so that you can possibly do some "MORTGAGE PLANNING' with your current return and possibly 'NOT' take all the deductions that are afforded to you under the law. Remember you can always 'Amend' your tax returns after the fact, but be prepared for scrutiny.
0 votes Thank Flag Link Sat Feb 19, 2011
Hi Dford!

In many cases some of those expenses can be backed out and put towards income.

Get with a good local lender who will take the time to look closely.
0 votes Thank Flag Link Sat Feb 19, 2011
Several smaller banks in our area would consider loaning on a home with the information you have given. But the requirements from the bank would typically be 30-50 % down payment, loan type generally, a 3-5 year arm on a 30 year am. Check with a local very small bank & even consider moving your business accounts to them the more they know about you the better chance you have of getting the deal done. A small bank generally focuses on relationships & paperwork not just the numbers. They will almost allways keep the loan in house & not sell the loan. Hope this helps.
0 votes Thank Flag Link Sat Feb 19, 2011
You still have time to file your 2010 tax returns and average out your 2 year's worth of income. Add that to your wife's W-2 income, and see what you can qualify for. You should take a look at your deductions and see what you really have. If you are making good money, like BG said, you should be paying taxes on it.
0 votes Thank Flag Link Fri Feb 18, 2011
Speaking to a Professional Mortgage Broker who has different options may work for you. Sometimes a larger down payment may work. Gross income is important as well. Best of Luck!
0 votes Thank Flag Link Fri Feb 18, 2011
You can't have the cake and eat it too. Either paying tax and able to qualify for a mortgage or not paying tax and missing the low price.

Amend your last two year tax returns then you may qualify.
0 votes Thank Flag Link Fri Feb 18, 2011
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