Mortgage for self employed with perfect credit?

Anonymous · ‎02-21-2020

Looking for loan options for self employed.

I have been in the same field for going on 7 years.

Perfect credit - FICO is 820+ across the board

No debt, at all. I've paid everything off recently.

I need a lender or mortgage broker that could work with just one year tax return basically, despite me being self employed for 7 years (with proof). I had a slow year last year due to having family medical issues and not be able to work as much. This year I've already made in last two months what I made all of last year.

I've read that with conventional loans you can get a loan with just one year tax returns, is this true? What other options may I have? I touched base with a mortgage broker recommended by a friend and she said it all depends on AUS, basically it may still come back and say that I need two years tax returns instead of just one.

Anonymous · ‎02-21-2020

What you are looking for is a bank statement mortgage. You will use your bank statements to show income rather than tax returns. Just Google bank statement mortgage and many lenders should come up. You can also look for a mortgage brooker that deals with self employed. They will know which banks offer bank statement mortgages.

Anonymous · ‎02-22-2020

No, I am not.

I am looking for CONVENTIONAL loan with 5% down and a 3-4% interest rate.

I know enough people in the field to know that bank statment mortgages require a minimum of 10% down and the interest rates are much higher, minimum of 5% which adds an additional $400-$600 a month on the mortgage amount that I am seeking. Absolutely not an option for me considering I have perfect credit.

JVille · ‎02-22-2020

You may have perfect credit but with 5% down in a Conv Loan your Tax returns as you describe them are a big issue. They don't appear to meet Conv or PMI standards.

To confirm, your 2019 returns are back to normal and it's your 2018 returns that are out of the oridinary for your business. All returns prior to 2018 are in line with 2019 tax year? Just trying to get a better picture as I stew on your situation.

edit - I can see it's 2019 returns that are bad. 2020 info is useless until there is an actual Tax Return. Share derogatory info on your file.

Revelate · ‎02-23-2020

I think you will need to ask around but a better question might be: what lender will use *more* than two tax returns for income calculation and that might be a large list.

One off year shouldn't be a deal breaker, gaps in employment aren't for W2 though they do have to be explained. 1099 is more tricky sure but if the average of 3 or 5 is sufficient that seems far more likely to be acceptable than 1.

Anonymous · ‎02-23-2020

Why would my tax return be an issue?

2016, 2017, 2018 go hand in hand with what I am already doing for 2020, though I am projected to make more in 2020. 2019 was a low due to family medical issues.

I plan on using 2020 tax return for a mortgage in early 2021 - but I am being proactive to make sure this is an option.

Anonymous · ‎02-23-2020

This could definitely be an option to consider as well!

Anonymous · ‎02-23-2020

You have a post you filed bankruptcy 3 years ago, how is that perfect credit?

JVille · ‎02-23-2020

Yikes! Where did I miss that? That changes a lot of answers. Is this true? A 3 yr old BK?

@Anonymous wrote:
You have a post you filed bankruptcy 3 years ago, how is that perfect credit?

Anonymous · ‎02-24-2020

Jeesh, you have a year to save ...

Just pay cash for your next house.