How do you get a home loan as an entrepreneur?

Asked by Jay Soriano, Lake Las Vegas, Henderson, NV Sat Jun 16, 2012

Just moved into Vegas to start a tech startup. Considering renting or possibly owning. College grad w/ couple job offers on the table in addition to self-employment (S/E) income. Girlfriend also has a job offer. I heard getting a home loan as an entrepreneur is a PITA so I'm leaning towards OWC, preferably w/ decent interest rate and a low down payment (5-15k). I'm hoping this is possible since we're a better candidates then most OWC buyers. Thoughts?

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Sia Howe, Home Owner, Las Vegas, NV
Sat Jun 16, 2012
Hi Jay, Only a lender can truly answer your question after seeing your last 2 years of tax returns, credit scores and hopefully your new letters of employment showing what the income will be and what the start date is.

OWC is a tough one right now in our market. With our inventory so extremely low, very few sellers will consider it. Then you have 35% of all homes being either short sales or foreclosures (which OWC is impossible) you would be narrowing your choice of homes down significantly. How ever there are some. I would be happy to send them to you and give you a list of a few lenders that would be happy to do all they can to get you financing.

With all that said, with a little work there is always hope.
0 votes
So a couple with perfect credit and a $10k+ regular income, as well as S/E income can't get a traditional mortgage to cover a condo under $100k? While I have peers making $15/hr getting pre-approved for $500k.. what has this country come to? Guess the best option is to save and buy a condo in cash, then when I want a home I'll finally have the 2 years of tax returns required for founders of a venture backed startup.

Sure there's variability in starting a company, but for the founders who do "fail", getting a high paying "traditional job" to cover a "traditional mortgage" isn't a problem at all.

Thanks for your answer, sorry for the rant.
Flag Sat Jun 16, 2012
john peters, Agent, Henderson, NV
Sat Jun 16, 2012
I have been in business for over 20 yrs. in Las vegas. I have been in the Mortgage Lending business for over 10 yrs, so I am well prepared to discuss your situation. There are many variables and many opportunities for home ownership for a business owner. Call me, Johnny Peters, North American Financial- 939-2474
0 votes
John Longeway, Agent, Henderson, NV
Sat Jun 16, 2012
Hi Jay,
I would be happy to provide you a list of preferred lenders you can check with to learn more about your options.
Call, text or email me.
John J. Longeway
Keller Williams Realty Southern Nevada
0 votes
Jeff Wallenf…, , Las Vegas, NV
Sat Jun 16, 2012
Only a very small minority of Vegas sellers will consider OWC. Why should they? Inventory is so low that many sellers are getting a half dozen all cash offers within just a few days of listing!

The trick to entrepreneurs and other self employed people getting financing is proving income. Most of the mortgage people I know want to see that you've been at this for 2 years with good results reflected on your tax returns. However, it sounds like you don't have any experience in this new job.

If you or your girlfriend have written job contracts that include salary numbers (that is, not self-employment income), most mortgage people will take that as evidence that you've got jobs and therefore income.

It's worth talking to a few mortgage people, sure. But you may need to consider renting for a few years while you develop income history and save a bigger down payment.
0 votes
David Cooper, Agent, Los Angeles, CA
Sat Jun 16, 2012
What is your credit score? Without provable steady income, your NOT a prime canidate for a low-interest fixed rate mortgage.

David Cooper Investor and Vuyers Agent at Since 1917 Realty 702-499-7037
0 votes
712 FICO, last checked in Aug 2010.. should have only gone up. S/E income is provable, it's just the fact of waiting to gather two years of tax returns. That's why I'm considering taking a "steady" job along with running a venture backed startup.
Flag Sat Jun 16, 2012
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