Do you think is possible to get a 170k loan (without co-signor)? If yes, how?

Asked by Alex, 92109 Wed Nov 10, 2010

Income 70k
Credit Score 715 (no negatives)
only 6 months of credit history (recently moved to the US)
self employed.

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Answers

19
Jeff Larabee, Agent, San Diego, CA
Wed Nov 10, 2010
Alex,
I'm self-employed and have just recently been through this process. All the lenders who were willing to give me the great rates available right now were asking for 2 years income history. You say you have 6 months of credit history but don't talk about your ability to verify income. The income has to be verified, typically in the form of US tax returns. I think you need to clarify whether or not you can show 2 years worth of income and how you would be able to show that. Along those lines, I would recommend showing as much money as possible over the next 2 years in your tax returns. Normally you would be trying to show less money in an effort to decrease your tax burden but increasing your taxable income will increase the amount you can borrow.
Good luck!
Jeff
jeff@jefflarabee.com
1 vote
Cory La Scala, Agent, San Diego, CA
Wed Nov 10, 2010
Hi Alex,

You probably can get a loan with only 6 months work and credit history, but you'll be sharing the risk with the lender , which means you'll be paying for it (higher interest and/or fees).

If it were me, and I was in your shoes once, I'd wait the 18 months, and try to increase my credit score even more. Listen to Dan about having 3 lines of credit, but optimally, you'll be better off if they are different TYPES of credit. For example, an auto loan, an installment loan, a bank credit card and a retail credit card are different types of credit.

I can send you some good information on credit and credit scores if you'd like. You're in a great position to keep your scores at the highest level possible if you know what you should be doing now and down the road.
1 vote
, ,
Wed Nov 14, 2012
Dear Alex,

Sit down face to face with your Mortgage Banker to be thoroughly prequalified. The prequalification process takes into account your total financial picture: income, assets and credit. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

You can verify the License of any Licensed Mortgage Loan Originator at nmls.consumeraccess.org

Hope this helps,

Trevor Curran
NMLS #40140
0 votes
Johnny James, Agent, Beverly Hills, CA
Wed Nov 14, 2012
It is possible sit down with your loan officer and get all the details.
0 votes
Matt Pickett, Agent, Colorado Springs, CO
Wed Feb 16, 2011
Yes, use alternate forms of credit for more tradelines. A good lender will know
Web Reference:  http://EveryListingNow.com
0 votes
, ,
Sat Jan 8, 2011
You would be better off being a Foreign National buying an investment property.

Unfortunately, living in the States, with an acceptable Visa, requires two years of Federal Tax Filings for self-employed borrowers.

Happy funding, Rudi
Web Reference:  http://www.umboc.com
0 votes
, ,
Thu Jan 6, 2011
Hi, Alex

That depends on a number things. Is he/she a premanent or non/premanent legal alien? Has he been self employed and filling tax accordingly for the last 2 years? Does he/she have a social security card? If it'll help, please see my blog regarding financing for permanent and non/permanent for further information .
0 votes
Constantine…, , San Diego, CA
Wed Jan 5, 2011
I think the easiest thing would be to get a preapproval online.
Websites like http://www.e-approval.com come in handy when it comes to figuring it out.
I think it's free as well
Good Luck!!
Web Reference:  http://www.e-approval.com
0 votes
Michael Diam…, , Rolling Hills Estates, CA
Mon Nov 22, 2010
Alex-
The best thing to do is contact a lender. They will put you in the right direction. I also think Jeff has made a good point.

Best of luck
0 votes
Daniel, , Baton Rouge, LA
Sun Nov 14, 2010
Nope

Not a govenment insured or guaranteed loan, and not a conventional loan that meets secondary requirements

As a self employed, new to this nation, you do not have a financial history to qualify

There may be a bank or private investor that may take a chance on you and portfolio your loan for 3 years

Sorry
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Nov 11, 2010
Have you worked with mortgage broker? IN lieu of questions seek professional advice from loan officer who can review your entire file.

Most lenders require you have 2 years of employment OR self employed which requires CPA letter stating your status.

Many other factors come into play when applying for a loan. If you are a non US resident have you considered a bank in your country ?

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Sarah Hollis, , San Diego, CA
Thu Nov 11, 2010
Alex-
The best thing to do is contact a lender. They will put you in the right direction.

Best of luck
0 votes
Alex, , 92109
Wed Nov 10, 2010
Thank you very much for all your answers guys! I'm definitely going to wait some more....
Generally speaking, as a self employed do you guys think it's worth it to try to pay more taxes to show higher proof of income in order to buy a house later on?
Do checks from clients would work as proof of income? For instance, I have one client for more then 2 years that pays me 3.5k monthly.
I've been paying my rent for more then 2 years (which is almost the amount of a mortgage), would a letter from my landlord count for anything?
0 votes
Kari Shea, Agent, San Diego, CA
Wed Nov 10, 2010
Hi Alex,

Please listen to the lending professionals. If you need a loan, we recommend you talk to a bank or a private lender. As agents, we are not qualified to answer you question.

Best of luck to you,

Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
0 votes
Voices Member, , San Diego County, CA
Wed Nov 10, 2010
Alex, also:

If the home you buy is valued at $300,000 or more, make sure you read up on the Foreign Investment in Real Property Tax Act, or FIRPTA, requirements.

Because of FIRPTA, the title or escrow company hired to transfer the paperwork when you sell the place may be obligated to hold back a chunk of your equity in the property. This ensures that the U.S. government gets its 10 percent tax cut when you sell. This is good to know for future planning.

Here's a link to the requirements.

http://www.irs.gov/businesses/small/international/article/0,…
0 votes
Brittany Roy, , Colchester, VT
Wed Nov 10, 2010
Hello Alex,

It looks as though your questions was answered.

Just out of curiousity, where is it that you are looking to buy?

Brittany Roy
0 votes
Voices Member, , San Diego County, CA
Wed Nov 10, 2010
Rudy is right. 2 years of verifiable work history without a co-signor. And self employed folks, we must look at at full tax returns with all schedule to determine losses, and if youre incorporated, both personal and corporate returns will be needed.

Also, lenders will need at least 3 tradelines (credit accounts with history) with a clean record, whether it is a car, credit cards, or a personal loan that's reported to bureaus. So start building credit and work history for the next 18 months and you'll be good.
0 votes
Homertsimpson, , San Diego, CA
Wed Nov 10, 2010
Hello Alex based solely on how you asked that question, the short answer is YES, and by qualifying on your own! When applying for credit there are many factors to consider and since you didn't mention it was for Real Estate we'll assume you are looking for 170K signature loan. When borrowing money there are really three main categories a lender will want to verify as it relates to you, your current income, your current and past credit history, and your current net worth or assets.

I would suggest searching for a lender that more closely matches the type of financing you're looking for, and make sure you have the three categories I've mentioned above ready for them to look at.

I hope this information was helpful and have a great day!
Web Reference:  http://www.HomeInfoToday.com
0 votes
, ,
Wed Nov 10, 2010
Hi, Alex. In short: no. Even with a co-signor. If self employed, you need a 2 year work history and tax returns. Also, keep in mind going forward that your write offs/losses will be applied against your income.
0 votes
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