All the best,
VP of Retail Sales
Toll free: 800-359-1996 x551
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.
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 :-)
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.
If you thought my answer was helpful, please give me a "Thumbs Up" or "Best Answer." Thanks!
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.
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.