Home Buying in Brooklyn>Question Details

Daniel Montes, Home Buyer in Bradenton, FL

Hi Im self employed my income changes how do i qualify for a mortgage loan

Asked by Daniel Montes, Bradenton, FL Thu Apr 11, 2013

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I recommend all my clients that have credit issues or that are self employed to check with The Lenders Network, check them out. If anyone can get you approved they can!
2 votes Thank Flag Link Tue Jul 16, 2013
Hi Dan, If you are self-employed, most lenders want a two year work history at your job in your current locale. More years are even better. The lender will want to see your tax returns for at least the past two years and maybe even this current year as well as bank statements. It does require more documentation if you are self employed rather than a salaried individual, but it is possible to get a loan! I would suggest you talk to a reputable lender in your community to discuss this in more detail.
1 vote Thank Flag Link Thu Apr 11, 2013
Stated income -refi. Lenders discount rental income by 25%. How much do they discount self employment income by?
0 votes Thank Flag Link Sun May 5, 2013
Stated income -refi. Lenders discount rental income by 25%. How much do they discount self employment income by?
0 votes Thank Flag Link Sun May 5, 2013
Dear Daniel:

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!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Thu Apr 11, 2013
Well the first thing you need to do is have a Loan Officer review your credit, income documentation and bank statements. Loan Officers should know exactly how your self employed income should be calculated to determine the qualifying effective income that will be used by lenders to determine how much you qualify for.

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!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
0 votes Thank Flag Link Thu Apr 11, 2013
Hello Daniel

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.

Wells Fargo
Andrea LoMonaco
Andrea.Lomonaco@wellsfargo.com
908-598-3584

CitiBank
Jacob Letowsky
jacob.letowsky@citi.com
212-559-4468

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!

John Jourden
Licensed RE Salesperson The Spire Group
john.jourden@spiregroupny.com
646-841-4164
Trulia.com/profile/johnjourden
Zillow.com/profile/john-jourden
0 votes Thank Flag Link Thu Apr 11, 2013
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