I guess its possible those of us that are self employeed- but it just seem IMPOSIBLE to be approved without a W-2 like everyone else.
I’m 40 and have had my business for almost 20 years. I have a low income but have a great down payment.
I would be a first time buyer and am interested in an income property in California. I just found out I can add 70% of the "rents" to my income
If banks would just use my gross income i might be able to buy now but they all seem to want to see a high net income.
To show a higher net-- I will have to stop about all write offs.
To show a higher net-- my families health insurance will sky rocket
I talked to a lender and he said I should be "seasoning the funds for my down payment." Anybody know the best way I can do that?
Lender said I need to pay ~800/yr to incorporate or LLC my business in order to prove my income. Is this really necessary?
You will see in my below signature that I am almost 2 years out of BK with ~670 FICO. I am in no rush to buy.
I don’t know if FHA or Conventional would be better for me, my wife and new born.
I would like to understand the new "Day 1 Certainty" program to show my income. Anybody familiar with that? What is the “third party” I need to verify my income?
Thank you for your time and any help you can lend. I had no idea how hard it is for self employed to get a house.
It really is possible to get a mortgage if you are self-employed. All that you have to show is that your income supports the mortgage payment according to the lenders' guidelines.
The problem with many, not all, self-employed borrowers is that they deduct so much on their income tax returns that they show no available income to pay the mortgage.
The lender will use your tax returns to verify your income.
There are some programs that do not require tax returns. A bank statement loan program comes to mind. Check with your LO to see if they offer that program. If they don't, find a lender that does have one.
Thank you SO10!
Your last paragraph sounded hopeful for me and others in my boat that feels like its sinking as it relates to having to provide taxes with a gross so high that I can no longer afford health insurance, write anything off or afford the higher taxes that come with bigger nets.
I thought they got rid of what you described in your last paragraph because to many applicants were taking money out of the bank then just re-depositing that money to show more income on their statements.
Does anybody have any info about the new “Day 1 Certanity” program? Would this be another good option for those that work at home that enjoy the benefits of lower net incomes? The “third party verifier”? Would that just be the bank? What is an example of a “third party verifier” that this program speaks of?
Thank you in advance. Im ISO a lil hope for my family and I to somehow stop writing all these darn rent checks every month!
Different lenders have different requirements so you will want to ask your LO what the specific requirements are for a bank statement loan.
From what I have seen on those type of loans is the following:
Be careful, you don't want to fall into that trap of trying to show more income than you actually make by depositing and withdrawing and re-depositing the same funds. It is mortgage fraud if you do and you don't want to go down that road.
When applying it is best to just be honest in your application and get qualified for the amount you can actually afford.
If you are looking to get a high LTV type loan, then you need to supply tax returns and go through the extensive verification process.
StartingOver10 is 100% correct. “A Bank Statement Loan” is the only way to go. With the profile I have described, I’m ok in about every category except the amount shown on my taxes.
I have yet to find any local bank that offers “A Bank Statement Loan” there are several on the web but they all sound a little to good to be true. hmm
I’d like to go for an FHA but I don’t think I can since they will ask to see my taxes and my wife’s credit.
I still am unsure what the “third party” is that I need to verify my income. By just providing BofA bank statements, does that mean that BofA is my third party? Or would it just be the word of my tax guy?
I have been hearing a lot of people talk about “Profit Loss Statements” Is this just something I fill out? My tax guy? Is it just the honor system with this kind of statement?
Lots of hope this new year. Thank you for your time and any help.