Corba1979, Home Buyer in Floresville, TX

can you get a loan if you just started your own company a year ago?

Asked by Corba1979, Floresville, TX Thu Mar 8, 2012

? In the same line of work for 14 years but now 1099 instead of W2, is a loan out of reach at this time? everything else is good just this is holding us back!

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Cathy Bureau, Agent, San Antonio, TX
Fri Mar 16, 2012
I just closed on recently where the buyer is an attorney with a 7 year old practice. They required 3 years of tax returns. I believe you can do it but you will need to show a positive increase in income and have great credit, low debt to equity. Good luck!

Cathy Bureau
Green Home Realty
0 votes
Michael Mand…, Mortgage Broker Or Lender, Cockeysville, MD
Fri Mar 16, 2012
Most lenders will want 2-years tax returns. There are lenders who will do loans with one-year tax returns, provided that is all the Fannie/Freddie Automated Underwriting Systems ask for. So call around. If you have trouble locating a lender, email me and I will dig up the info on the lender who will consider it.
Good Luck,

Mike Mandis
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Brad Dawson, , San Antonio, TX
Fri Mar 16, 2012
As most of the comments here state, yes you should be able to get a mortgage based on your compensating factors, but at what cost? While your scenario seems logical and you shouldnt have any issues, the fact of the matter is the end investors you will create the market for your mortgage are not interested in anything out of the box. Not having the minimum 2 years tax returns to substantiate the income from your new business is definitely considered 'out of the box'. Again, there are programs out there that can get it done, such as the 'hard money' lenders suggested but I would not recommend going down this road unless there is some really good reason for buying right now. My advice would be to wait until you have the 2 years of taxes to corroborate your income. The FED met this week and stated they plan to keep the funds rate @ 0-.25% through 2014. While many other factors affect mortgage rates, this is a good indicator that rates will remain low for some time.
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Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Thu Mar 15, 2012
There are some cases where less than 2 years will work, I have closed several. Here is a clip from my guidelines that shows 2 exceptions to the two year rule:

Self employment income with less than a 2 year history when a 12 month self-employment income has been reported on the most recent tax years tax return and 1) the borrower demonstrates a minimum 5 year history of comparable Income or higher income in the same profession or industry, OR 2) the business income is derived from a long term legally binding contract.
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Annette Levi…, , New York, NY
Thu Mar 15, 2012
If you just started a company (that is not consulting) then Tom is wrong. You need 2 years track record to see if you are making money. If you had bought an existing company then it is easier since it would have a track record.
Follow Jason's advise, look for owner financing. After you have 2 years filed tax returns, a lender can see what you are making and if you can afford the mortgage you are looking for.
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Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Thu Mar 15, 2012
Build your case, if you have a client based business that helps. As a borrower you can submit anything that supports your application, business plan, client list, etc. Good luck,
0 votes
Don Groff, Agent, Austin, TX
Wed Mar 14, 2012
Being in the same line of work it is possible. Find an experienced lender or broker to check out what options you have.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
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Jason Campbe…, Agent, San Antonio, TX
Fri Mar 9, 2012
You do have a reasonable shot at it... the magic will be in your tax returns... if you wrote everything off under the sun like you should if you are self employed, you will find it hard to qualify for any good amount, depending on how those numbers shake out...

Fact is... the self employed market has really suffered quite a hit since all the stated income loans went the way of the dianasaur...

Best thing you can do is sit down with a good mortgage broker who has access to tons of lenders and see if they cand find you a good nitche product with a lender that does a lot of self employed borrowers...

If that does not work out... there is the old "Hard Money" lenders. They will want a strong down payment, and the interest rate will suck, but you can refinance out of it later.

Or... Seller financing may be the order of the day, though you have a lot less choices in which homes are out there, and you can't be very picky. I don't like this option due to lack of good inventory out there in the market.

Start here: - girl is flat amazing.

Hope that helps
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Aaron Guzman, Agent, San Antonio, TX
Fri Mar 9, 2012
Yes, Owner Finance for now and refinance later.
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Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Fri Mar 9, 2012
Yes...... Guidelines allow for 1yr self employment if you have previous experience in the same line of work.
It is certainly worth a try

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration =>
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Johnny Willi…, Agent, San Antonio, TX
Fri Mar 9, 2012
It really depends on who you work with. I've several lenders who work with 1099 business owners. First you would need to sit down with one of them and allow them to look at the entire situation but it's possible I've seen them do it before. Give me a call or email me so that I can assist you in the entire home buying process.

Best Regards,

Johnny Williams
Real Estate Agent
210-858-7899 Direct
Mission Real Estate Group
0 votes
Jana Halvers…, Agent, San Antonio, TX
Fri Mar 9, 2012
Most lenders would like to see 2 years of tax returns if you are self employed. There are possible exceptions if you are dealing with a credit union or small community bank. It never hurts to ask a lender as they can tell you what programs are available. There are also Owner carry options. I would recommend the following loan officers to talk with:
Erika Naegelin at Supreme Lending
Cody Reid at Legacy Mutual Mortgage
Laura Bott at Randolph Brooks Federal Credit Union

Best wishes. Jana
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Tina Lam, Agent, San Jose, CA
Fri Mar 9, 2012
Lenders see 1099 very differently than W2. Since most credit terms, like mortgages, are repaid regularly, lenders want to see regular sources of cash flow. There are lenders who would accept the higher risk involved with 1099 payments, but their rates are likely close to 10% and you'd need to have a substantial downpayment of 35-50%.
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