Home Buying in Dallas>Question Details

Myranda Fay, Renter in McKinney, TX

Can I get a bank mortgage with a letter from my employer regarding income?

Asked by Myranda Fay, McKinney, TX Mon May 20, 2013

I recently started with a small business (4 months ago) in which I am paid in cash every 2 weeks with it being my responsibility to pay my taxes. I save 25% of every check to put towards my taxes once I file next year. My husband works for a typical 9-5 with actual paycheck stubs. Would a bank give us a loan with just a letter from my employer stating my salary?

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8
Paid in cash doesn’t sound good to me, if you really mean cash like currency then there isn’t an underwriter in the US that will like that arrangement. If you earn enough to qualify for a mortgage then your employer is required to withhold taxes. Make an appointment to sit down with a loan officer and lay everything out for them and ask them what you need to do. The mortgage guidelines are so strict that no one can give you the full picture on this platform or any forum like it, only a detailed review will give you the answers you need and deserve. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
1 vote Thank Flag Link Tue May 21, 2013
Only if you have a 2 year history being paid by a 1099. Have you tried to get pre-qualified using only your husband's income and debt?

Melissa Bachmann
Sr. Loan Officer, NMLS 180426
PrimeLending, A Plains Capital Company
214/535-5653 Direct
http://www.melissabachmann.com
0 votes Thank Flag Link Tue May 21, 2013
Those good old days are gone unfortunately!!!!
Gotta have paystubs.....
0 votes Thank Flag Link Tue May 21, 2013
Many factors are involved to qualify a family for a mortgage. Best to contact a lender direct to determine if you could purchase a home .

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

Follow me on Facebook
http://www.facebook.com/lynn911dallas
0 votes Thank Flag Link Tue May 21, 2013
Myranda,

You probably will need to budget off of your husband's income, you'll probably need to show 2 years' of tax returns with a Schedule C to demonstrate a history of being self-employed. Cash is not your friend if trying to qualify for a mortgage regardless of which direction the money is flowing.

For self-employed borrowers my program does still use 'light doc' in that I can accept 12 months of bank statements to show the cash flow, unlike any bank that I'm aware of.

John Lyng
Mortgage Counselor - NMLS 280951
JLyng@naca.com
0 votes Thank Flag Link Tue May 21, 2013
Most lenders would consider you as "self-employed" because at the end of the year, you will receive a 1099 form. Why don't you just have your employer do the withholding, and make you a W-2 employee? Are you in the same type of work that you've been doing for the last 2 years? These are FHA and conventional guidelines. Of course, if you go to a portfolio lender, they have more leeway in the loans they make. After January 2014 with the advent of the Qualified Mortgage, that will probably change. I suggest you work with an experienced and local mortgage loan officer rather than any of the Big Banks. That's your best chance.

Good luck!

Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas
0 votes Thank Flag Link Tue May 21, 2013
Hello Myranda, I have an excellent lender who may be able to help your situation. Feel free to contact me so we can further discuss your real estate goals.



Providing Solutions Because...Your Move Matters!


Michael L. Brownstead, GRI, ABR

REALTOR®
Keller Williams Realty
1002 Raintree Cir., Ste. 100
Allen, TX 75013
E-mail: MBrownstead@msn.com
http://www.BrownsteadRealEstate.com
Cell: 214-872-0400
0 votes Thank Flag Link Tue May 21, 2013
Hi there,

Good question.. You sound like a good candidate to get qualified, talk to a lender who can guide you as to the best type of loan and obtain additional information to qualify for a loan. Lenders basically want to assess the risk level and ability to pay the mortgage every month.

Simply put...a stable income for 2 years in a similar field is what lenders will ask for as one of the criterias, the rest will include credit score, debts, loans, savings,downpayment etc. Your husband should qualify if he has been employed for 2 or more years as most likely being the primary loan applicant.
More information regarding your income, prior work history since yours is a personal small business will be required. A letter from your employer will help and bank statements showing your earned income, lender may have more questions.

There are various financing programs available to you, lease to purchase options available, Usda loans with zero downpayment if purchasing available in qualified cities, FHa loans with minimum 3.5% down etc

If you would like further information and guidance, please email me at jamuna@halogrouprealty.com, call or text my mobile 972 814 3682

regards
Jamuna Thill, Realtor
http://www.halohometeam.com
0 votes Thank Flag Link Tue May 21, 2013
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