Financing in Schaumburg>Question Details

AA, Both Buyer and Seller in 60173

How is mortgage scenario for Business owners now?

Asked by AA, 60173 Mon Mar 23, 2009

My wife and are in the process of upgrading to single family home from our current town home.

I have a small services business (S corp), in which i was working part time for the last 4 years. Last year I went full time in my business, leaving my full time job. Business is in the same lines of what I was doing before. My company has not turned any profits yet. In 2008 its just close to break even(small loss actually). Revenue is at $350K.

My wife is working full time making around 75K. We should get around $70 K from the townhouse equity, which is going to be in the market soon. Other assets an IRA of 80K saving of 20K. Whats our chances of getting a decent mortgage. We are looking for houses in the $450K, with taxes in the $15K per year range.

Any local lenders/brokers are better than other when it comes to small businesses? Our credit scores are around 710.

any advise on how to position our case for consideration in a better light?

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Answers

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AA, from your description, it leads me to wonder whether you/your wife would qualify for mortgage financing just using her income. While it is not clear from your post to whether you plan to sell your townhome before closing on your new home, this is another area to investigate with the right mortgage professional.

Mortgage brokers/lenders are all operating with the same lending underwriting guidelines since most residential mortgages are closed and funded to sell to the secondary market. There is more scrutiny now than before so be prepared to share and disclose all income documentation, personal and business tax returns.

My advice to you is to start a process working with the right mortgage professional who can quickly determine solution(s) to help you. If you require a personal consultation, you are welcome to contact me.
0 votes Thank Flag Link Mon Mar 23, 2009
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