I am self employed with a 689 credit score is it more difficult to get a mortgage since I don't get a paycheck

Asked by newheights10, Greensboro, NC Tue Jun 11, 2013

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Randall Yates, Other Pro, Dallas, TX
Sat Nov 16, 2013
We can give you a referral to a reputable lender that has the right type of loan for you, that's what we specialize in, difficult loans that most lenders cannot do..
0 votes
Allen Lowe, , Greensboro, NC
Thu Jun 13, 2013
If you have tax returns and or bank statements verifying income I can finance no problem,Thanks Allen 336-362-8737
0 votes
Curly Sue, , Texas
Thu Jun 13, 2013
No...it's not more difficult...it's just different. If you've been self employed for 2+ years and have adequate income you shouldn't have any problem.
0 votes
Kelly Marks, Agent, Greensboro, NC
Thu Jun 13, 2013
For self employed individuals, the requirements for documentation to secure a loan are more intense. However, if you have been self employed for two years or longer, then you should have a good chance at securing a loan. There are many people in your same situation as you so lenders are used to self employed individuals. I invite you to contact me on my cell at 336-338-6012 to discuss some different financing options with low down payments.
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Wed Jun 12, 2013
Who says it is more difficult? It is actually less paperwork for you because you don’t need to supply pay stubs. If your loan officer doesn’t know how to read a tax return it is going to be a lot more difficult for them.

You might want to tweak your credit scores a little bit if you are using a conventional loan; if you are using FHA it will not make a big difference. But if you are using a conventional loan that credit score will bump your interest rate 1/3 or ½ % so you should find out what is causing them to be that low. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference:  http://jamessimms.com/
0 votes
allan erps,A…, Agent, Pearl River, NY
Wed Jun 12, 2013
More difficult yes, certainly not impossible but Debt ratios & other factors involved.
0 votes
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Wed Jun 12, 2013
Self employed income is analyzed differently than someone not self employed who is pulling a salary or hourly income.

Lenders go by your 2 year's most recent tax returns. They take your NET income figures for the last two years and average them to arrive at an income figure. They add depreciation and depletion figures to your income and subtract meal and entertainment expenses.

There are slight variations depending on the type of self employment - Sole Proprietorship,LLC, S-corp, etc. but that is how it works for the most part.

This can create an issue sometimes, because your CPA is looking for ways to minimize your tax liability by deducting as much as allowable, while this actually decreases the amount of income a lender will let you use.

Your best bet is to speak with a loan officer well versed in helping selp employed borrowers and analyzing their income. I can help you with this if you like. Just give me a call or shoot me an email and we can touch base.

Tony

Tony Grech

Loan Officer -NMLS #977416

WCS Lending, LLC


Tony.Grech@WCSLending.com

Toll Free: 866.936.5363 ext. 278
0 votes
Patricia Lof…, Agent, Fuquay Varina, NC
Wed Jun 12, 2013
You will need to show some type of income, it will depend on the way it is shown on your tax return. It is also best if you have been in business for aleast three years.
0 votes
Josh Miller, Agent, Greensboro, NC
Tue Jun 11, 2013
Your fine I'm sure. Give me a call anytime and ill get you squared away.

Josh Miller
Re/Max of Greensboro
336.215.8019
0 votes
Andy Matejka, Mortgage Broker Or Lender, Greensboro, NC
Tue Jun 11, 2013
As long as your income is enough to qualify for your payments you should be ok.

1040 income will be averaged for 2 yrs. If it's decreasing, you will use the 2012 income.

you will also want to be prepared to provide a YTD P&L statement for most lenders as well. (you need to prove that your income is still stable so far this year)
0 votes
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