Claire;
This is great start that your husband has a steady job & income for 12 years, and you have an independent contracting job where you income may vary from month to month. You credit score is a key component in helping you get a loan and the rate you pay for the mortgage is based on ths credit score, depending on the of the loan you want. There are amny types of loans that you need to understand the pros & cons of. Great news is you have 20% down this I will also help, but you will need addtional funds for closing costs, which include insurances and taxes with some other items.
I can certainly recommend you to an excellent mortgage broker with 20 years experience who is patient, this would be a good place to start, as soon as possible. In case you need to gather other funds or work on your credit score to get the best loan possible, and get pre approved. This is key, so you understand the numbers before you start your home search, so you both feel comfortable with what you can afford.
I am a full time agent with Frank Howard Allen live in San Rafael, know the market & would be happy to answer other questions, it is a great time to get into the Marin market as interest rates and houseing prices are very favorable for you. Look forward ot hearing from you.

Regards, Nigel
Nigel Faulkner
Frank Howard Allen
T:415 298 2485

Claire,
For self employed people, lenders typically take a 2 year average for income. You would need to have a mortgage broker or lender review your tax returns. If your husband has W-2 income and has been employed steadily for 12 years, that's a plus. Your credit scores will also be a big factor. The best thing for you to do is to set up an appointment with a mortgage broker that will sit down with you, explain current financing options, get your current financial information, and begin the pre-approval process. We recommend that buyers take the time to learn and understand a little more about the process, which helps the buyers to be more comfortable about the whole buying experience.
Once you have been pre-approved, you are ready to start the process of looking at property within your pre-approved price range. That way, there won't be any of the surprises or disappointments that come with falling in love with a property that you later find out that you can't afford.
Let us know if you need a recommendation of a mortgage broker that is great with first time buyers. We would be happy to refer you to one that we trust and recommend to our clients.

Mary Kay and Kathy

Hi Claire, you would need 2 years of tax returns and 2 years of 1099's. Please note that as a lender, we look at the bottom line, your net income after all of the expenses that you claim on your taxes... Unfortunately, some self-employed borrowers claim excessive expenses and show very little net income. Anyways, if your net income from 2008 is less than your net income from 2007, they would probably use your new net annual income divided by 12 (months), and ask for a letter of explanation as to why the income declined. If your net income from 2008 is more than that of 2007, they would probably be able to use your new net income divided by 12. Please let me know if you have any questions at all.

Hi Claire!

Being an independent contractor should not affect you and your husbands ability in getting a home loan as long as you can show that you have earned a consistant income. I have been selling homes in Marin County for over 23 years and can be of assistance to you in your search for a home if you're not already working with a Realtor. I have lenders that I've been successfully working with for years that can match you with a loan program that will fit your needs. Please feel free to contact me at 415-328-5186 if I can be of assistance to you.

Sincerely,
Dave Corbin
Coldwell Banker
415-328-5186 http://www.davecorbin.net

Hi Claire,
It appears that you've received good information regarding your income question. Your next step would be to find out how much home you and your husband would qualify for. Congratulations on your decision to pursue home ownership. It would be a pleasure to assist you in the pursuit of acheiving your goal. Again, congratulations and good luck.
Regards,

Otis

Hi Claire
Guess what? Realtors are independent contractors, too, and we get mortgages all the time (well some of us do haha) !
You certainly will NOT be disqualified from being approved for a mortgage.
I believe you would have to show your past 2 years tax returns & 1099's (they will use the average of the 2 years)...........check with a lender, and you will see how much you qualify for.
In the meantime - don't worry...if your credit is good, and with 20% to put down, I am sure you will be fine!

Good luck!

Independent contractor income is qualified income and the bank would consider to lend you money.

The only difference between an independent contractor income vs. a regular 9-5 income is the bank will ask the independent contractor to provide full personal and business tax returns (at least 3 yrs) to determine steady and verifiable income.

Additionally, subject to the loan amount and your husband income, it is possible that only his income is needed to qualify for the mortgagr loan. The spouse can be on title of a property withOUT being one of the borrowers.

For example, consider using your husband income to qualify for the mortgage loan and use your income for other purchases (furniture, appliances, etc) ... diversify the use your credit vs. tying both credit into 1 major purchase. Again, this suggestion is subject to the loan amount vs. the total monthly "gross" (not net) income.

I recommend you contact a local mortgage loan officer at a direct lender (BofA, WellsFargo, Citi Bank, etc) to discuss your borrowing options.

Hi Claire,

If your spouse can qualify on his own income then you should have no worry.

However if we have to use your income, the underwriters will look at your 1099 as well as tax returns.

I can get you pre-approved and you can shop with confidence.

Jacob