Self employed home buyer question

[Anonymous]

I've been self employed since 1993, but I only show 5k or so income on my taxes. I filed an extension for last year and haven't finished filing. Anyways I have 65k cash to put down from a divorce settlement and want to get a house worth about 100k. My fico is 685, although it would be above 700 if I had time to dispute a few items and pay off my credit cards down to 10-20%... I also have $800 a month income from child support? Where should I apply for a loan and will they qualify me? Should I go ahead and finish my 2008 taxes which I have to do before Oct anyways and show more income (of course that would suck as I'd have to come up with back tax money then...) or what? 

[Anonymous]

As of right now, you have about 0 chance.  They will only count the maount of income reorted on tax returns and they need 2 years of those to average.  So even if you file 08 taxes and show 80K in income, you will still have 2007 showing no real income.  In reality, you would have to refile 07 showing income and file 08 showing income.  Once both of those years were in the system and you had paid all the back taxes and penalties then you would have a chance at getting a loan.  Typically with a refile of a past year, it is 3 months or more process to get all the paperwork through the IRS system.

this is a simple case of "you can't have your cake and eat it to" type thing.  You can't write off everything to show no income, and then try to qualify for a loan.

anyways, good luck with it.

[DallasLoanGuy]

Do you have a relationship with a credit union?

 They can be flexible sometimes.65% down mightbe enough for them to approve you.

[Anonymous]

I missed the 65K down.  The will help things alogn for sure.  One thing though, I don't think most banks will loan 35K on a house loan.  Not enough money on it.  That is why a local bank that you have an established relationship may be the only way around this.