As long as you are showing some income you will be able to get a loan. You need to speak to a mortgage banker and get yourself pre-qualified to see how much you can borrow based on your documented income.
The bankers use ratios to figure out how much they would be willing to lend you. They will look at your mortgage payment, monthly real estate taxes and homeowner's insurance expenses and all your other debt to form a ratio against your reported income. In most cases the bank will allow you to spend up to 45% of your documented income for your living expense and other debt. Depending on the bank and your other qualifications (assets and credit report) that ratio can go up or down.
In the end, you need to speak to some mortgage bankers and find out for sure. Do that as soon as possible, it does not cost anything and mortgage rates are very low right now. If I can be of further assistance, please contact me direct. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Typically, lenders will average your self employed income over the past 2 years, or if the recent 12 months income was significantly lower, they'll use the lower.
I'm always available if you need help. good luck!
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Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
Please feel free to contact a Mortgage professional at your bank. I work with the following individuals on a regular basis and they would be more than happy to assist and answer all of your questions. We as Real Estate professionals are not qualified to answer these types of inquiries.
Once you're preapproved, do not hesitate to contact me if you're looking for representation from a Buyer's Agent.
Good luck to you!
Licensed RE Salesperson The Spire Group