Home Buying in 60619>Question Details

Jessica, Home Buyer in Chicago, IL

I AM A SELF EMPLOYED I GET MY 1099 FOR THE STATE OF IL YESTERDAY A LOAN OFFICER TOLD ME I NEED TO PAY MY TAXES IN ORDER TO GET A HOME LOAN IS THAT TRU

Asked by Jessica, Chicago, IL Tue Feb 21, 2012

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Evelyn Fred’s answer
Hi Jessica,

Since you're self employed the only way to prove your income is by paying your taxes. You need to show your income.

Now that you have taken care of this part, your next step would be to speak with a lender. They can help point you in the right direction.

Once they analyze your debt to income ratio, look at your credit score & history they are best equipped to either approve you for a loan or help you with credit repairs.

Call a few lenders, start with the ones that responded to your question right here on Trulia.

Good luck!
0 votes Thank Flag Link Thu Feb 23, 2012
Yes, you do need to pay your taxes in order to get the loan. If you are not claiming any income you will not qualify for loan.
2 votes Thank Flag Link Wed Feb 22, 2012
It typically is true. I would talk with a few other lenders and see what all your options are.
1 vote Thank Flag Link Tue Feb 21, 2012
I went through this myself. I know it can be very frustrating. If your income has declined over the last 2 or 3 years, the lender might only accept 2011 as your income level (rather than averaging the last 3 years). I would be happy to discuss my experience and how i made it happen
1 vote Thank Flag Link Tue Feb 21, 2012
You will likely need to provide your 2009 & 2010 Completed Tax Returns.

If you haven't filed your 2011 taxes yet, be prepared to provide your 2011 1099.

Since you are self employed your Loan Officer may need more evidence of what your overall net income is, and therefore is asking you to file your 2011 taxes.
1 vote Thank Flag Link Tue Feb 21, 2012
yes you have to pay your taxes in order to get a home loan the bank will look at it as if they give you the loan for a home and you do not pay your taxes they can put a lean on the home
1 vote Thank Flag Link Tue Feb 21, 2012
Thanks everyone, Today I was on the phone with the IRS. I fax them my returns and they accepted them. I have was put on a payment plan. So with me doing that do you think the underwriter will approve me now?
0 votes Thank Flag Link Wed Feb 22, 2012
Yes, you do need to pay your taxes in order to get the loan. Remember a Loan officers wants to give you a loan. it is how they get paid.
0 votes Thank Flag Link Wed Feb 22, 2012
Based on your last question I would say the LO is doing his job. If you haven’t made quarterly tax payments then you will need a large lump sum in April. Look at it another way, why do you not want to pay them? If you are robbing from the IRS to make a down payment then your loan application should be declined. It is moves like this that help get a 550 credit score. Buying a home should help your credi score not make it worse. Maybe the info in the link below will help. Good luck,
0 votes Thank Flag Link Wed Feb 22, 2012
Jessica - it is hard to answer this without further information. If your income for 2009 and 2010 are sufficient then there is no need to file for 2011 - this is not required until after April 15th and even then you could provide a copy of an extension if you did not file on time.
However there may be another reason that your loan officer wants 2011 filed? I would be happy to give you a brief explanation and review your situation if you would like? You can call me at anytime.
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
0 votes Thank Flag Link Wed Feb 22, 2012
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