Self employed less than two years?

[Anonymous]

Do we even have shot? Husband has been self-employed less than two years. The field is unrelated to his previous job. Started his company in sept. 2013, started earning in Jan. 2014.
Income after deductions for 2014 taxes was $140,000 minus $60,000 paid in taxes. We were very conservative with deductions so he would have a higher AGI but paying so much in taxes sucked! I have 2.5 years at same job, W2's showing $60,000/ year.
Husbands mortgage scores is 675. I haven't checked my mortgage score yet but should be near his. My fico 08 is 730's. Houses in our area range 400k-600k for starter homes. We have $30,000 for down payment & closing. We have about $1,500 total in monthly payments for cars + student loans.
Is there any way for us to get a mortgage or do we have to wait until we file our 2015 taxes? Any advice?

[StartingOver10]

You could check into a bank statement loan but you would need to have a much, much larger down payment.

Where do jumbo loans start in your market? I am assuming at a higher point than $417k because you sound like you are in a high cost market. Where are you? (metro area)

[Anonymous]

My advice is wait until after you file your taxes. I went through this when buying my house in 2010. Technically, I am self employed but found out it was much easier to just put myself on payroll, not pay myself as a 1099. Is your husband a contractor, or is there a legal entity? If there is an entity, what is the formation?

[StartingOver10]

^^^Agree with the above. It is much easier to get a mortgage if you have all your ducks in a row but if you have deducted too many expenses from your tax returns to support the mortgage with appropriate ratio's than you will need to use alternate mortgage sources anyway.  Alternate mortgage sources means programs designed for those without sufficient tax return income. This usually means you need to put down 35% or more. Some will do it with 25%. You have to check around your local area (community and regional banks) to see what programs are available and what criteria the lender needs.