Question Details

Aeris L. Wil…, Renter in Charlotte, NC

677 middle score, 20%down, 8k per month for last 15 months as 1099employee. 10 years prior w2income in similar field. where do we go for mtg loan?

Asked by Aeris L. Williams, Charlotte, NC Sat Apr 21, 2012

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1
Good morning Aeris,

When you convert your income from Salaried with a W2 to self-employed with a 1099, you cannot qualify for mortgage financing until the following conditions have been met:

1. 3 years in business self-employed
2. 2 years Federal tax returns have been filed
3. Net income after expenses, after averaging over the previous 24 months, is sufficient to qualify for a mortgage loan.

My advice to you is this:

1. Be sure you retain the services of an excellent CPA and you disclose that you wish to purchase a home in the future.
2. Meet now with a Local Mortgage Banker to review your total prequalification picture. Even though you are not currently qualified for mortgage financing due to the 15 months of self-employment, your Mortgage Banker can review your other qualifications such as credit and assets so that you have a clear understanding on how to prepare to become a homeowner in the future.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Sun Apr 22, 2012
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