C, Home Buyer in Chicago, IL

Can I get a home loan without a steady pay check but with money in the bank?

Asked by C, Chicago, IL Wed Jun 25, 2008

I am an independent contractor. I do not make a steady pay check and have been slow the last couple of months. I have money in the bank though for a down payment. Can I even get a home loan without a co-signer?

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Jeffrey Kropp, Agent, Chicago, IL
Sat Jun 28, 2008
As an independant contractor, the issue is that they use the average adjusted gross income from last two years. Most small business owners have very little adjusted gross income even if they do well, since they claim so many deductions. In the past, a stated income loan was available to these folks, which came with a slighter higher interest rate, as long as they had a decent down payment and good credit. However, stated income loans are not available any more since the meltdown, so there are few options unless you have actually reported a good deal of income over last two years. Of course, you need to speak with a pro as the others have advised.
Web Reference:  http://www.1sthomegroup.com
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Chris Covalle…, , Chicago, IL
Thu Jun 26, 2008
Hi C,

Your income is just one part of your overall lending profile. Depending on how long you have been an independent contractor your current income situation could be completely normal for what you do. Other areas of your profile to consider are 1) how strong is your credit? 2) how much of a down payment are you making? 3) what are your debt to income ratios?, and 4) how much in reserves will you have after you purchase a home?. There are still lending options in existence which may satisfy your current situation and your goals. I would be happy to discuss these with you if you would like learn more.
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Brent Bester, , Columbus, OH
Wed Jun 25, 2008
Its very hard to do nowadays without verifiable income. But underwriters are going to look at your yearly average instead of the past two weeks. If yo lost your job and switched it and now are workingt somewhere else yes its going to be a little tougher. However, if you make decent money each year and have a track record to prove that you should be fine. You need to consult a professional loan officer. I'd be more than happy to speak wih you and learn more of your situation.

Brent Bester
Mortgage Professional
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