Home Buying in 91605>Question Details

Novel, Home Buyer in 91605

Do landers take anything other than whats reported on income taxes into account?

Asked by Novel, 91605 Thu Apr 26, 2012

Just a general question I guess or more of venting than anything. I'm self employed. The past 2 years I've had all the write offs i can get thus my AGI is low and the last lander i sat down with will only qualify me for 115k. (not enough for what I NEED to get a proper size home for a growing family in the area(s) i want.)
Even though I have pointed out to the lander that i'm currently paying $1500 rent. paying off a car at $2000 a month to have it payed off by the end of the year, and have bank accounts stating that i deposit at least $1000 a month into my savings makes no difference. In other words, technically the minimum I can afford is $1500 since I've been doing it for the past 4 years for my rental. So the question is, are there any lenders out there that actually consider anything other than tax return income for qualifying for a loan.
BTW besides a car loan i have no other debt and that will be gone at the end of the year as well.
Thank you

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Lenders consdier three things: Income, Assests and Credit Scores. All three are important.

Your income taxes are important to indicate income, your bank statements, as well as things like a copy of any stock or retirement accounts will address the Assests and any lender will want to pull a what's referred to a tri-merged credit report.

Not all lenders are a good fit for every buyer and perhaps you need to speak with some other lenders who may be able to offer you something more appealing. I would also suggest that if possible you speak with a credit union as they do not typically operate under the same constraints that a traditional "big bank" lender who sells their loans on the secondary market operates under.

I hope you find a great lender and wish you the best of luck.
0 votes Thank Flag Link Thu Apr 26, 2012
Hi Novel - There are still 'stated income' loans available for the self-employed but you will need a much bigger down payment and you will pay a higher interest rate. It is unfortunate but all the new regulations for the banking industry have targeted small business owners and the self-employed. It's a shame, we are killing "the goose that laid the golden egg". I wish I had better news, but until we wake up in this country and stop punishing people for being successful, this is the way it's going to be.
0 votes Thank Flag Link Thu Apr 26, 2012
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