Assuming you meet general lending criteria the problem is you went to a traditional bank (Note to readers Do Not Waste Your Time speaking with the Big Banks they do not deserve your business and are the absolute worst to work with. There are many good people who work there but the institutions themselves are their own worst enemies)
I would suggest speaking either to a small local bank or Credit Union or a good mortgage broker.
Below is a link to a short article on what lenders are looking for when considering someone for a mortgage.
Without reviewind the last two years of Federal Income Tax returns along wth your other financial information, there is no way anyone can properly advise you.
Lending guidelines (Fannie Mae, Freddie Mac, FHA, VA, USDA, etc) all allow for depreciation and depletion (although depletion is rarely seen) to be added back into the qualifying income. Under certain circumstances, mileage might also be able to be added back into your qualifying income. The same holds true for depreciation in rental income.
When buyers cannot qualify for a traditional mortgage, some often turn to Hard Money Lenders. Caution should be used there though. Many of those types or loans come with a much larger down payment requirement, significantly higher interest rates, and term only for a short period of time. A huge issue then arises if you are still not able to qualify for a traditional mortgage once that term has reached its maturity. You could be out your investment if you are not very careful.
The same can be said for lease purchases. I do not suggest doing lease purchases for a variety of reasons. There are simply way too many things that can go wrong with one from either side.
Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
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Theoretically the previous two answers are correct. However, you wil have to increase your tax liability for the next 2 years Home prices are at an all time low but on the rise. The house you can buy today may cost thousands more in two years. In addition, at least for now, you can claim Home Mortgage Interest as a deduction on your taxes for next two years, off-setting the higher interest rate you would have to pay a Private Lender Do the math before you make a decision
Good Luck. If I can help please contact me.
There is no short cut, no easy path. You can look for a lender that better understands the self-employed you will still face a steeply uphill battle. You can put a larger amount down then seek secondary financing or financing on other assets like your car to recover your cash after you have a mortgage.
I know many self-employed people who limit their deductions and pay a higher tax in the 2 years prior to seeking a loan or structure they income to straddle tax years. In December 2012 you pay yourself a large bonus, in December 2013 you do that again. You file your taxes February 2014 you have 2 years to taxes showing high income.
As a self-employed person it take greater planning, strategy and documentation than if you worked for Exxon, Home Depot or IBM. As a self-employed person you have some degree of control over your continued employment working at a large firm, while it may be easy to get a loan, you can be called in the day after closing and told to empty out your desk.
It sees unfair but who said life was supposed to be fair.
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Again, talk to a good lender that will advise you before you do your taxes for 2012.
Your best bet, being self employed, is to contact a Private Lending Company. Unfortunately, most Banks and Mortgage Lenders just look at your Adjusted Gross Income. They don't take into consideration that many of your deductions like depreciation and depletion are not out-of-pocket costs.
A Private Lender will look differently at your "real" income. They also don't depend on your Credit Score. They will look at your 'real" income to determine if you are capable of repaying the loan and the Appraised value of the property against what you are able to purchase it for.
A Private Lender will require a higher down payment and a higher interest rate but will not put you through the hoops that a Bank will.
If you would consider going with a Private Lender I can recommend one that I have worked with in getting some of my non-conforming clients financed. They are licensed in the State of Georgia to make Home Mortgage Loans. Their contact information is:
The Westmoore Group, LLC
Ph: (646) 801-6190
Fx: (646) 619-4291
The Westmoore Group, LLC is a licensed lender in the State of Georgia and operates under the license #30544.
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