Home Buying in 60626>Question Details

Oralynn, Home Buyer in 60626

At my job I'm always up for contract renewal three times a year. Because of this, lenders don't want to count my income towards a

Asked by Oralynn, 60626 Thu May 26, 2011

mortgage loan I'm not really such a risky prospect as I work in a growth field, have contracts with multiple employers at once and am actually having to turn down contracts because I have too many offers to handle, However, there is no way to "prove" this on paper. I also have a lot of money saved up and can afford a 15% down payment on the homes I've been looking at but no conventional lender will offer the rest of the money. A friend of mine suggested creative financing options like partial seller financing or lease to own which I could most likely afford to pay. But I have no idea how to initiate this type of negotiation. Any advice about how to proceed or suggestions of other options would be greatly appreciated.

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Contact a Realtor in your area and have them do a mls search for seller financing. Easy as that.
1 vote Thank Flag Link Sat May 28, 2011
Hello Oralynn,

This type of income siuation should not be a problem for conventional financing if you have established at least a 2 year history of earnings as a contract worker.

The best first step would be to go through a thorough pre-qualification to purchase reviewing credit, income and assets to be able to recieve an automated underwriting approval. We would also be able to pre-underwrite your file so that you have a conditional mortgage commitment to shop for a home.

Please contact me if you would like more help this.

1 vote Thank Flag Link Thu May 26, 2011
Carmen, great idea! I've honestly never thought of that! Very creative, and a great thought. We are all so used to being boxed in by banks in our market. I love it when people think out of the box in real estate transactions - that's part of why I got into this business. There really are unlimited avenues for creativity in real estate. Just open your real estate mind...
0 votes Thank Flag Link Sat Apr 28, 2012
Hi Oralynn,
I agree with Andrew in that your first step should be to speak with a lender to determine pre-qualification status. If you have at least 2 yeas of employment history and current income, I'm not really sure why the contract renewal 3 times a year comes into play unless you are using a contract as proof of income that states this. The other option you have is to do what is called a verification of employment. This would verify that your employment is likely to continue in the future. If you need further assistance. Please feel free to contact me.

Cecelia Marlow
Chicago Bancorp
Mortgage Banker
312-738-6294 direct
0 votes Thank Flag Link Fri May 27, 2011
Listen to Andrew Luett, he has it spot on. Key to having this type of employment situation being approved by underwriting is proving that is the nature of how you make money and you have a history of being successful at it, and generally 2 years it the required amount of track record you need.
0 votes Thank Flag Link Fri May 27, 2011
Dear Buyer,

I understand your predicament, banks have changed their qualification requirements & its difficult to get financing. The first step to getting a home for your will involve requesting your realtor to show you homes where the seller is willing to do financing. Nowadays many sellers who are short on cash may be willing to consider this as an option, since the option of doing a short-sale leaves them with zero cash or deficiency judgement. If you have solid credit score & can demonstrate a long-term consistency in rental payments you will be a more desirable candidate. Please know that I have put together several seller financing agreements & would be happy to provide you with more information. Please feel free to call me directly 312-671-9207 or email me at urvashi@atproperties.com with any questions.

Best regards,

Real Estate Consultant
0 votes Thank Flag Link Thu May 26, 2011
The best advice I can give you is to contact Ryan Mecum at Wintrust Mortgage. You can reach him at rmecum@wintrustmortgage.com. If he can't help you then it's unlikely that anyone can. He usually cleans up the messes left by other lenders.


Mark Malave
Web Reference: http://www.markmalave.com
0 votes Thank Flag Link Thu May 26, 2011

Please feel free to contact me and I can help get you a home loan.

0 votes Thank Flag Link Thu May 26, 2011
It sounds like you've done a lot of work researching what the lenders will do for you. One thing I could suggest is forming an S-Corporation or an LLC, having the Corporation/LLC be the entity that takes contracts, and pay yourself a regular salary out of that company - you will want to discuss this with your attorney and accountant. The negative aspect of this is that you probably won't have consistent income in the lender's eyes for a year or two.

Seller financing is certainly an option, but you need to find the right seller who is willing to do this. Rent to own is usually a temporary measure for a year or 2 until you can qualify for financing. In the MLS sometimes a listing agent will say "seller will finance" or "rent to own". That's probably your only way of screening them.
0 votes Thank Flag Link Thu May 26, 2011
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