Financing in 75034>Question Details

owningmyhome, Home Buyer in Allen, TX

Self employed and FHA loan

Asked by owningmyhome, Allen, TX Sat May 22, 2010

I have been self employed since 2008 short by 1 month (for 2 year period). My income fluctuated due to economic meltdown. Can I go for a FHA loan?

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Absolutely. Someone had answered you saying that FHA had some kind of 3 year rule... that is not correct. As for your income fluctuation and write downs, etc... a lender would need to look at your personal tax returns and all schedules. If you file as an entity they would also need your 1120s and k-1s. You can get pre-approved before you hit the 2 year mark and the lender would provide a conditional approval subject to you closing after your 2 year anniversary. So you know my answer is not fictitious, about 75% of my business is FHA and we work with many self employed borrowers every month. You can also check out our different weekly free online workshops for homebuyers to help you through the process. http://houstontxmortgagelender.com/free-online-workshops/hom…
0 votes Thank Flag Link Mon May 24, 2010
owingmyhome
Definately go speak with a lender to see where you stand. They are going to look at your tax returns so if you write alot of expenses off it will hurt you. They will look at your reported income after expenses for qualifying. That is why so many self employed cannot get a loan for home owning. They did away with stated income.
0 votes Thank Flag Link Sun May 23, 2010
Hi Owning My Home,

You really need to speak directly to a lender about your exact circumstances.

I use Mike Dickstein at Iberia Bank. His phone number is 817-832-1389.

His rate for an FHA loan on Thurs was at 4.5% with no points.
And please tell him I gave you the number and he won't charge you an origination fee (the 1% fee that almost all mortgage brokers charge). Also, their lender fees run about $900-1200 total, most other lenders and brokers charge that just for their processor and underwriting. In fees alone, he should save you so much.

The other thing that he has done for my clients is help them if they don't fit a guideline. He will be really straight with you on what you need to do to get a loan and estimate how long it will take to be able to do it for you.

He has closed 3 of my deals in less then 21 days (contract to close) just this year, one was under 15 days.

Other big plus, he answers his phone! :-)
0 votes Thank Flag Link Sun May 23, 2010
Yes you coul still get fha loan.
Contact a local lender as the purchase price, credit score & other factors like income etc.. hv to be take a look at before any body can actually give an OK.
0 votes Thank Flag Link Sat May 22, 2010
Much more is involved than 2 years of self employment

1. Credit scores
2. 3.5 % or down payment
3. 2 years employment AND CPA who does your tax returns most likely would need to validate your self employment
4. Bank statements past 2 months
5. Debt / income ratio

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat May 22, 2010
I have been in the same profession entire career of 25 years. Doing the same job.
0 votes Thank Flag Link Sat May 22, 2010
Hello OwningMyHome

The short answer is NO. FHA has very specific rules, and are not very flexible. You must be at the same job for a minimum of 3 years now. The exeption would be: moving to another company or job in the same field, for the same or better pay.
Please call me 786-290 5445 or e-mail me at info@kamalsalim.com
Web Reference: http://www.kamalsalim.com
0 votes Thank Flag Link Sat May 22, 2010
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