Home Buying in Chicago>Question Details

May20002, Home Buyer in Chicago, IL

How can I get approved for a home loan without proving income?

Asked by May20002, Chicago, IL Wed Apr 18, 2012

I would like to buy a home. I'm a first time home buyer. I have around $100,000 in cash in the bank, credit score around 715 ,no debt, no student loans, etc.. I'm self employed and while the pay is pretty good (around $150,000 a year), I've only been in business 1 year and every fha lender I come across wants 2 years of tax returns. Is there any way around this?

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Yes possibly if you went to school for what your doing or have anther year in full time time maybe in a different field . If you need further assistance please feel free to call me @ 7089254076 or email @ diana@findingourbalance.com I look forward to assisting you .
0 votes Thank Flag Link Wed Apr 18, 2012
Go to the bank your business works with.

a conventional loan may be your only option. FHA loan is not likely to happen

Good Luck
0 votes Thank Flag Link Wed Apr 18, 2012
ALL traditional loans require FULL Documentation:

Proof of Income - 2 yrs tax returns, pay stubs, W2's/1099's etc.
Proof of Assets - must be in your name
Credit History - Tri Merge credit report

Many excellent recommendations were offered below:
Continue renting until you qualify
Seller Financing - seller can get above market income from your interest payments
Hard Money Lender - very costly option
CASH - via the friends and family network

If you are serious about buying, get yourself preapproved from a lender so you know exactly what you have to do in order to qualify for a mortgage.

Bill J Deligiannis
First Centennial Mortgage
0 votes Thank Flag Link Wed Apr 18, 2012
It sounds like those times without income verification are gone...
However, you can check out local hard money lenders (much higher rates and points, and usually 30 to 50% down)

Irina Karan
CDPE - Certified Distressed Property Expert
Beachfront Realty, Inc.
0 votes Thank Flag Link Wed Apr 18, 2012
Not in my shop, we need 2 years just like ALL FHA lenders. And I hope you reported $150,000 in income last year, Uncle Sam’s employees can read this too.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Wed Apr 18, 2012
not only do you need money.. you need credit, you need job history , you need stability
0 votes Thank Flag Link Wed Apr 18, 2012
Not in this market. For many years you could get a 'no doc' loan, but the R E Bubble caused those loans to disappear. You just need to wait a while.
0 votes Thank Flag Link Wed Apr 18, 2012
No there isnt.

If you cant prove it, no loan. It makes sense, they are going to just hand someone a bunch of money because they "told" them they make money. And banks look at one year as not enough information. You are too high of risk. If you had 3 good years, sure it could be worth a risk, but banks feel anyone could have one good year. It makes sense if you think about it. Just rent one more year then buy.
0 votes Thank Flag Link Wed Apr 18, 2012
Search for a a private lender or purchase something where the seller will finance.
0 votes Thank Flag Link Wed Apr 18, 2012
Hello May20002,

The options have been laid out by Frank and Vidi. Because of your credit score and liquid asset, a seller-financed home can be your best option. There are of course pros and cons involved in this type of arrangement and or agreement: At the end of the lease, the value of the house is already predetermined and the interest is higher.

Also, if you change your mind upon the expiration of the lease with option to purchase agreement, you will lose your option money.

Make sure that you do love the house you will be considering. Picture yourself living there for many years.


0 votes Thank Flag Link Wed Apr 18, 2012
Look around for a hard money lender. Regards,
0 votes Thank Flag Link Wed Apr 18, 2012
Unfortunately, there is no way around this unless you were buying all cash. However, there are other options to a traditional lender. Ask your Realtor to look for homes that are doing seller financing. Seller financing means that the seller is willing to loan you the money. If you go with seller financing you will probably have to pay a higher interest rate, as there is more liability for the person lending the money. Another option would be gift money or a loan "friendly borrow". If you have a friend or relative that is able to loan you the money or give you the money you can buy the home outright in cash. Again, if you are trying to get a traditional loan you have to show tax returns.

Good Luck,

Vidi Barker
0 votes Thank Flag Link Wed Apr 18, 2012
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