Bummed out Broker, Advise please

[dbrowning]

I just went all in on getting credit up and all good mortgage scores in the 699 range. Found that home, you know the one ! Called to get my pre qaulification. Pulled credit. Bingo we are in 3 % down,  said should be coming in a 3.4 I belive it was interest. Then bam, Finishing all the formal loan App. Work, Self employed. How long 5 months. Sorry no can do ! Has to be 2 years... The employer made a bunch of the drivers brokers. Had a choice to the new pay, Which lost 1/2 of the income a month. Or We could go broker. So we Bought our truck. (Bought paid for )Rolling down the road.. Now traffic jam... Any advise other then to wait the 2 years ?

[ezdriver]

Sorry for your situation but it is the norm for most lenders. The only exception to the minimum two-year for self employment is hard-money lenders and they require huge downpayments.

[dbrowning]

Ah, Thank you for the reply EzDriver. Def something we did not consider in Nov. We were just trying to make the right choice to survive.  WELL, Looks like I get comf where I am for a bit.

[_NERD]

That blows. Save up some coin while you wait.

[BrianB_The_Loan_Professor]

I wish there were more options - when it comes to self employed income the history shows it takes a while to be consisten - 

If you were going from self employed to w-2 there wouldn't be the same concern.

Good Luck

Brian B

[dbrowning]

I guess to say it frank, It was simply an over sight on our behalf. We have been in the same industry over 30 yrs. Same comp he was employed with and 6 good yrs soild history with the company.  Kinda sucks , Well it sucks a whole lot... lol. But yes big down or wait are the only choices. Had we know that. We certainly would have not paid in full for the truck, But hey in less then a year I will have 2 trucks paid for.. So there is some positve 

Now since this is reported on tax for the 2015 yr. I am not sure if we would be good to go next yr or it would be 2018. We have owned trucks prior since 95. However 6 yrs ago when I got ill we sold them and he went to work as a comp driver. So all that good is gone too, Sigh... 

Oh the things we learn to late... Thank you everyone for chimming in.. I sure appreciate the input and sympathy lol

[StartingOver10]

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@dbrowning wrote:

I guess to say it frank, It was simply an over sight on our behalf. We have been in the same industry over 30 yrs. Same comp he was employed with and 6 good yrs soild history with the company.  Kinda sucks , Well it sucks a whole lot... lol. But yes big down or wait are the only choices. Had we know that. We certainly would have not paid in full for the truck, But hey in less then a year I will have 2 trucks paid for.. So there is some positve 

Now since this is reported on tax for the 2015 yr. I am not sure if we would be good to go next yr or it would be 2018. We have owned trucks prior since 95. However 6 yrs ago when I got ill we sold them and he went to work as a comp driver. So all that good is gone too, Sigh... 

Oh the things we learn to late... Thank you everyone for chimming in.. I sure appreciate the input and sympathy lol

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There might be an alternate loan program available for you:  requires larger down payment and higher interest rate. Can refi when you get two years of self employment. Make sure your tax returns show enough income to support the mortgage (don't deduct so much you show no income). Call a few mortgage brokers to see what is available in the private money world (not quite hard money, but not your standard mortgage either). I have noticed that all kinds of programs are coming on lately for those that are outside normal guidelines - but you have to have enough down payment, 

[dbrowning]

Thanks for the reply... It is just a crazy situation. We have been incorporated since 1996. In business since 95. We have owned trucks over the years and have all fillings paperwork etc. We never Closed the business. He did work a few years as a driver as it benfited us at the time, for him to be home and ins reasons with my episode. So this is not a new business in anyway. Same business, same industry for over 20 yrs. I did see in some guidelines of lenders they can accept W2 and 1099, Doing the projected income for repayment.. So yes you can be self employed and work another job...I have no issue with paying my taxes due and nope do not take it to the zero limits at all, never have... We are as always in the profit line. So yep pay my taxes  Talking with a few lenders now how this will be looked at and will keep everyone posted. I wonder if the first guy misunderstood the time line and thougt we were "brand new" 

[VALoanMaster]

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@dbrowning wrote:

I just went all in on getting credit up and all good mortgage scores in the 699 range. Found that home, you know the one ! Called to get my pre qaulification. Pulled credit. Bingo we are in 3 % down,  said should be coming in a 3.4 I belive it was interest. Then bam, Finishing all the formal loan App. Work, Self employed. How long 5 months. Sorry no can do ! Has to be 2 years... The employer made a bunch of the drivers brokers. Had a choice to the new pay, Which lost 1/2 of the income a month. Or We could go broker. So we Bought our truck. (Bought paid for )Rolling down the road.. Now traffic jam... Any advise other then to wait the 2 years ?

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Hi Dbrowning,

You do not always need to have 2 years of self employement to qualify for an FHA, VA or even a conventional mortgage. What you need is a loan officer that knows the guidelines.

[Anonymous]

VALoanMaster,

I am curious about what you said about how you do not always need 2 years self employment for conventional.

I was trying last Dec and no-one I spoke to ( 7 different brokers/banks/CUs ) would even consider anything less that 2 years on 1099.

They flat out said no - even though great credit ,21% down and low DTI. Only thing I was offered was portfolio at 4.25% WITH a rich relative ( whom one of the bank managers knew ) co-sign.