Home Buying in Houston>Question Details

Sshetty, Home Buyer in Houston, TX

I have been on a W2 for the last 3 yrs. Recently I changed jobs & I am on a 1099 now.

Asked by Sshetty, Houston, TX Thu Feb 5, 2009

Recently we tried to get a mortgage & were told that I had to have a 2yr history while on a 1099.Is there any way to get a mortgage if we have about 15% for downpayment .Also although I am on a 1099 i do not own a business. I am a independent contractor.

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5
Two years is standard once you switch to a 1099. You are basically self employed and they want to know that your income will continue. There might be a way around this if your previous job was in the same field. Your mortgage broker might have turned you away before submitting it to a lender, I always say" I don't underwrite loans." and don't reject a loan based on what I think the lender will do.

I just submitted a loan and got it approved, another mortgage broker rejected it because it seemed like it wouldn't go through, loans are not always pretty but with a little work you would be suprised what can be done.
0 votes Thank Flag Link Sun Feb 8, 2009
I have never heard of the 2 years on 1099. I've always been asked for 2 years of tax returns along with paystubs. Of course your income to debt ratio is a big part of the decision. I'm a realtor and a musician and both are considered independant contractors. Although it's tough to save that money to pay your taxes and also the added expense of paying 15% social security tax as opposed to regulars jobs 7.5 % it has it's advantages. 15% downpayment was very good but with this economy now you may want to try for 20%.

Good luck and I hope this was helpful

Ken Gettinger
Realtor
Sea Sotheby's International Realty
http://www.kengettinger.com
0 votes Thank Flag Link Sun Feb 8, 2009
Lenders require the two year history even with 15% down.

Lacinda Homfeld
First Imperial Mortgage
0 votes Thank Flag Link Fri Feb 6, 2009
Sshetty --- in my opinion, you should not have a problem with 15% down. A very mistaken perception is that you can't get a loan or its hard to get a loan right now. Its not for most people who have decent credit and some money to put down. The first thing I would do as your realtor would be to get you with a top-notch loan officer. A good loan officer will have access to a variety of lenders and will be able to "shop" you for the best loan.
0 votes Thank Flag Link Fri Feb 6, 2009
Realtors are also independant contractors and most of us have 1099's as well. Unfortunately, most lenders must have some type of history when you are on a 1099. Due to the housing/lending crisis, this is usually mandatory.

Terrence Charest
0 votes Thank Flag Link Thu Feb 5, 2009
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