Home Buying in Mineola>Question Details

Needa_home, Home Buyer in Mineola, TX

FHA Guidelines--Self Employed less than 2 years

Asked by Needa_home, Mineola, TX Sat May 16, 2009

I took over the business I had worked at for over 20 years a little over a year ago. I operate it under a PLLC and have five employees. My bookeeper filed for an extension on my 2008 taxes, so I don't have a 2008 tax return yet. Is it possible to qualify for an FHA home loan under these conditions ?

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3
I would recommend clients like yourself to submit a FULL application(without a property) to a loan officer who knows FHA guidelines..... not a 'Yes Man'.
Gotta get those taxes done though.
0 votes Thank Flag Link Sat May 16, 2009
Thanks Tom,
Case by case basis is what is needed here I guess.

· "Less than two years cannot usually be considered stable unless the applicant has had previous
related employment and/or extensive specialized training "

Texas RPLS - 25 years experience with extensive training/testing for Professional Registration.
Took over an established firm with 30+ year history, employed at that firm since 1985
0 votes Thank Flag Link Sat May 16, 2009
Here is the answer from our internal guidelines:

1.12.2.1.10 Self-Employed Borrowers
· A borrower who has an ownership interest of 25% or more in a business is considered to be
self-employed.
· Minimum of 2 years required. A shorter timeframe will be considered on a case-by-case basis.
· Signed 4506-T Required.
· Copies of the past two years’ signed and dated individual federal income tax returns are required.
· If the business is a corporation or partnership
o Copies of the signed federal business income tax returns for the previous two years plus all
applicable schedules and
o List of all stockholders or partners showing the interest each holds in the business
· Less than two years cannot usually be considered stable unless the applicant has had previous
related employment and/or extensive specialized training
· Less than one year is not acceptable

As you can see.... it is open to interpretation by the underwriter.
Certainly, we would want the 2008 tax returns done and a copy of the current P&L.
I would also expect you to need some good compensating factors.
0 votes Thank Flag Link Sat May 16, 2009
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