Home Buying in 08620>Question Details

Mary Palma, Renter in Lawrenceville, NJ

Hi, I am currently self-employed for 1 year and my fiance is a w-2 employee. I can't find a lender who can work with this situation, can anyone

Asked by Mary Palma, Lawrenceville, NJ Thu Jul 25, 2013


Help the community by answering this question:


We offer loans for the self employed that have been working for themselves less than 2 years. Feel free to contact me at 973 979 4100. We lend nationwide.
0 votes Thank Flag Link Mon Jul 29, 2013
call me to help you find a lender 609-977-7746
0 votes Thank Flag Link Mon Jul 29, 2013
I agree with Tony in Michigan that you will have to go with a Portfolio Lender because of your 1 year history of self-employment. Most lenders require a minimum of two consecutive years in the same business. Mary, please realize many portfolio loans carry a higher rate. If you can wait a year, you may have an easier process and a better deal. My company and I specialize in no income loans as well as conventional loans for Self-employed borrowers so please reach out to me if you have any further questions.

All the best,

Fritz Walter
VP of Retail Sales
Toll free: 800-359-1996 x551
Direct: 203-783-4551
Email: fwalter@totalmortgage.com
NMLS ID: 387922
Visit my webpage: http://www.totalmortgage.com/bankers/fritz-walter/
Company Website: http://www.totalmortgage.com
Total Mortgage Services, LLC - NMLS #2764

Total Mortgage offers a complete selection of mortgage programs including:
Conventional, FHA, FHA 580-639 FICO, FHA 203 Renovation (Streamline & Consultant), HomePath, VA, VA IRRL, USDA, Jumbo financing , and No Income or reduced income. Portfolio, jumbo, and conventional programs offered for self-employed borrowers as well.
0 votes Thank Flag Link Mon Jul 29, 2013
Hi Mary!!

Self-employed is 2 years filed tax year income as you've been hearing, that is the problem apparently. But....have you considered using just your fiance's income possibly or the obvious would be to continue renting for another year then proceed to purchase a home. I'd love to help you when the time is right. Good luck :-)
0 votes Thank Flag Link Mon Jul 29, 2013
Well we're pursuing some lenders who are willing to work with just two tax returns as opposed to two full years. Do you need two full years or just tax returns? Also, what kind of credit score is your company looking for? Unfortunately he does not make enough on his own for a loan.
Flag Mon Jul 29, 2013
CFS Mortgage, http://www.cfsflex.com, has a flexible loan program. They allow a mortgage after a foreclosure, short sale, or chapter 7 bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
0 votes Thank Flag Link Sat Jul 27, 2013
Good afternoon Mary,

Basic Underwriting Guidelines for FHA, VA, FannieMae, and FreddieMac mortgages require a minimum of 2 years self-employment with 2 years filed tax returns. Net income after expenses will be averaged from the 2 years tax returns to determine qualifying income.

If the Loan Officers you have spoken to didn't explain that, I apologize, they should have.

If you are seeking "a lender who can work with this situation" or, in other words, the answer you want to hear, there are plenty of Loan Officers like that, too. But they will only waste your time. The Guidelines rule the day and there are no shortcuts around them.

Trevor Curran
NMLS #40140

If you thought my answer was helpful, please give me a "Thumbs Up" or "Best Answer." Thanks!
0 votes Thank Flag Link Fri Jul 26, 2013
Being self employed makes it difficult. Lenders are looking for 2 year self employment history. Can you qualify for the home on just your fiancé's income. I don't know who you spoke to regarding a loan. You might try your personal bank first. Then talk to John Quinn with EverBank 856-261-8071. He may be able to point you in the right direction if he can't do the loan.
0 votes Thank Flag Link Fri Jul 26, 2013
No, neither of could qualify for a high enough loan by ourselves. Thank you, I will reach out to John Quinn if my local banks cannot help.
Flag Fri Jul 26, 2013
Everyday we speak to self-employed people here in California that are successful and have good credit but are routinely turned down by banks and brokers when applying for a loan to purchase or refinance their home.

The typical problem that self employed people run into is that they write off business expenses on their income taxes each year. It's a catch 22. If you write off most or all of your businesses expenses, it appears to a mortgage lender that your yearly net income isn't sufficient. On the other hand, if you do not claim many write offs for expenses, you immediately set yourself up for paying higher income taxes.

However, that no longer has to be an issue in your search for a home loan. We can now help locate specialized loan products tailor-made for self employed and high net asset clientele in California only.

We have access to new mortgage options such as:

1. 12 months of business or personal bank statements

2. 1 year tax returns (no more 2 year averaging)

3. Substantial assets

4. No income ratio for loans under 50% LTV

In the past, a majority of self employed people would simply seek out a stated loan in order to purchase or refinance property. After the housing and mortgage meltdown, many of these loan programs simply disappeared. Lenders soon became more stringent with their lending guidelines and it became subsequently harder for people who owned their own businesses to qualify for financing. Now that the real estate market is making its way back, a small number of lenders are now expanding their guidelines to become more attractive to certain buyers who have been neglected.

Give us a call at 800-598-9790 or visit http://www.selfemployedmortgageloans.com for more details.
0 votes Thank Flag Link Thu Jul 25, 2013
Yes. I have a few options. I work with investors, Sandy Storm victims, self employed, and individuals who work on wall street and receive much of their compensation in the form of bonuses. I have a handful of mortgage reps that I work with to accommodate this pool of buyers. Reach out to me and we'll figure out who might best be able to help you.

0 votes Thank Flag Link Thu Jul 25, 2013
Deborah Madey, Real Estate Pro in Brick, NJ
Tony has a great point...with perfect credit & a healthy down payment you can probably do it!
0 votes Thank Flag Link Thu Jul 25, 2013
Hi Mary,
That is because Conforming (Fannie Mae/Freddie Mac) and FHA guidelines require you have a 2 year history of self employment documented by tax returns.

I have banks who do non-conforming loans - called a portfolio program because they dont sell them to Fannie or Freddie - and they will consider a shorter term of self employment. They normally require perfect credit and a large (20-25% at least) down payment.

If this is something you're interested in, please feel free to contact me.
0 votes Thank Flag Link Thu Jul 25, 2013
The problem is I am looking into FHA because I only have 5-7% to put down. My credit isn't perfect either, probably average.
Flag Fri Jul 26, 2013
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