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Amanda, Home Buyer in upstate ny

my husband and i are both paid ( under the table). how am i ever going to buy a home?

Asked by Amanda, upstate ny Sun Mar 30, 2008

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Amanda,
You will have to get what is commonly referred to as a No Doc loan. In other words your credit score and other records will have to work and a stated income (no documentation of income). They have tightened up the rules but, there are still lenders out there that have products such as these. They are usually for the self-employed and people that are sole propreiters of their own businesses.

Good Luck
Larry Story
Coldwell Banker Triad
0 votes Thank Flag Link Sun Mar 30, 2008
I think it should be in the Trulia rules to not give advice to people who clearly disclose that they are doing something illegal.

As for Amanda, pay taxes like the rest of us.

I am surprized people are so nice to hear, offering advice, blah, blah blah.
2 votes Thank Flag Link Sun Mar 30, 2008
Hi Amanda. Even if you were to be able to get a loan, don't you think the IRS would wonder how you can afford making the payments if you don't declare all of your income. Tax evasion and tax fraud are serious offenses and the IRS is not stupid.
1 vote Thank Flag Link Sun Mar 30, 2008
Ute Ferdig -…, Real Estate Pro in New Castle, DE
MVP'08
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If you were legitimately self-employed, I'd suggest a lease-option. But as an owner, I'd be very reluctant to even lease you a property if I knew that you were acting unlawfully (failing to pay taxes). If you're not going to be honest with an entity that has the legal power to fine and even imprison you, I'd have little doubt that you wouldn't be honest with me.

A piece of advice: Get a good accountant. There are many legal and ethical ways to minimize the taxes you pay. You may find that operating legally and ethically--declaring your income and paying taxes--may not be as bad as you think. No, it's not fun to pay taxes. But it's not fun to look over your shoulder for the Feds, and to know that buying a house will remain difficult, if not impossible.
0 votes Thank Flag Link Mon Mar 31, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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save your money
pay cash
then no need for a loan

anyways

good luck
0 votes Thank Flag Link Mon Mar 31, 2008
Amanda

This is the downside of accepting your pay illegally. You can't eat your cake and have it too. Either you accept your pay under the table, and have no income to show for a mortgage, or you take your pay legally, and pay taxes like the rest of us.

The only other solution to your question is to save up all your ill-gotten money, and pay cash when you've collected enough to buy the house with cash. But I guarantee you, that at the closing, the IRS will have lot of questions about where you accumulated all that cash, when you've showed zero income for the last 30 years.
0 votes Thank Flag Link Mon Mar 31, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
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I hate paying taxes but the truth is everyone will have to at some point. You are going to regret getting paid under the table. So suck it up! ( I say with a level of jealously. How much are we talking about really. Don't tell me. I would rather dream my own dream).
0 votes Thank Flag Link Sun Mar 30, 2008
Amanda, do you file income taxes? Do you NOT get a 1099? Are you both drug dealers!! Stated Loans are dead or dying or both!! Start getting yourself legit. I'd do it just to not live under the constant threat of the IRS bursting through your door some day!! Talk to a lender. I assume you some credit established or do you pay for everything in cash? In order to get a loan nowadays you need to fit into the round hole with the round peg!!
0 votes Thank Flag Link Sun Mar 30, 2008
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