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02-17-2009 02:44 PM
HERE'S THE PROBLEM I'M SELF EMPLOYED WITH A PRETTY NICE FICO 680 I MAKE MORE THAN ENOUGH MONEY ALL MY BILLS PAID ON TIME NEVER ANY LATES .BUT MY TAX RETURN IS GETTING IN THE WAY BEFORE IT WAS THE FICO NOW IT'S YOUR TAX RETUNS.WHAT IS A PERSON TO DO THEY SAID THEY CAN'T DO STATED ANYMORE BUT WHY IT'S SO MESSED UP BECAUSE PEOPLE LIKE ME WHO HAD NOTHING WITH THIS HOUSING MESS GOT THE LOAN STATED WHICH THEY HAD NO PROBLEM APPROVING.
02-17-2009 02:56 PM
Honestly i'm not really sure what you're asking, lack of punctuation and caps looks is hard on the eyes
But to answer your question from your title... yes, people are getting refinanced all the time. Don't buy into the media hype The requirements are a little tighter... a conventional loan usually requires a minimum score of 680. It couldn't hurt to look into it, call some lenders and see what they say. Good luck!
02-17-2009 04:50 PM
02-17-2009 04:57 PM
You make enough money or you don't. And if you do... then it is on your tax return.
Take a bunch of deductions to reduce your tax bill, then you reduce your income too.
File amended tax returns for '07 when you file '08. Pay the penalty and enjoy your refi..... or don't.
You can't tell the irs that you make $10K and your loan officer $100K.
Think: "having your cake and eating it too". These loans have high default rates. They will be back someday.... but nor anytime soon.
02-17-2009 06:58 PM
The bottom line is that your income as self employed is your cash flow into the business minus your expenses. The more you claim expenses the less income you have. In this market, with banks loosing billions and people being underwater, why should you expect a lender to not have adjusted lending standards. Stated loans have been disapearing for a couple years now and have been pretyy much gone for over a year. They were orignally meant to be only for people with stellar (say 740 +) credit and large down payments but less income. They were never intended to be a mass produced loan for everyone who wanted to write off all their expenses. I for one am glad they are gone. If I have to use w-2 income to qualify, so should everybody else without extenuating circumstances (i.e 740 credit and 20-30% down)
No offense intended, but alot of people are having a serious wake up call who bought in 2002-2006/7. Just because loans were given out then, doesn't mean they should have been...And the current market proves that out.
02-18-2009 05:45 PM
There's a reason no-doc loans became known as "liar's loans."
02-18-2009 06:09 PM
Wow that is not really a fair characterization. Self-employed individuals do not receive W-2's, so they should not qualify for mortgages.
Depreciation on certain assets is a common deduction taken by the self-employed. It's a paper deduction in many cases that lowers "gross income" but is not a cash outflow. Take the use of a portion of the primary residence for example.
More egregious examples are health insurance and retirement contributions. A "W-2" employee pays the employee portion of their health insurance and their 401K contributions with pre-tax dollars. The "W-2" employee enjoys a tax benefit from doing so, but those monies are still inluded in gross income on the W-2.
A self-employed filer is able to deduct those contributions from their taxes as well, The difference is that as Schedule C income, the concept of gross income is blurred and when applying for a mortgage, it is as if those funds were never earned.