Once Poor... Now Just Self-Employed

Anonymous · ‎09-18-2007

After 8 years working in the same field as an independant contractor on commission, I decided to take a risk and open my own actual business. The first year I took a loss, but this year I will have a profit of about $31,000. It doesn't seem like much but since I've never made over 12 k, for me it is. Things are going great and I'd like to take out a mortgage, but four years ago I filed bankruptcy. I haven't had a late payment since, and am 100% debt free. My FICO is 666 (which was hilarious since that number is comming up a lot lately, on reciepts, everything) and I'd like to purchase a home for about 109,000 and put 5 k down. I've read FHA backed loans average out your income, and that would severely lower it! I'm a bit embarassed to go to a broker, and more than a little worried about being disappointed. Is there no hope? Housing prices in my area should remain stable for about 2 years, should I just continue renting?

Message Edited by Seymour on 09-18-2007 11:35 PM

Anonymous · ‎09-19-2007

Seymour wrote:
After 8 years working in the same field as an independant contractor on commission, I decided to take a risk and open my own actual business. The first year I took a loss, but this year I will have a profit of about $31,000. It doesn't seem like much but since I've never made over 12 k, for me it is. Things are going great and I'd like to take out a mortgage, but four years ago I filed bankruptcy. I haven't had a late payment since, and am 100% debt free. My FICO is 666 (which was hilarious since that number is comming up a lot lately, on reciepts, everything) and I'd like to purchase a home for about 109,000 and put 5 k down. I've read FHA backed loans average out your income, and that would severely lower it! I'm a bit embarassed to go to a broker, and more than a little worried about being disappointed. Is there no hope? Housing prices in my area should remain stable for about 2 years, should I just continue renting?

Message Edited by Seymour on 09-18-2007 11:35 PM

You should get all 3 scores and compare make sure there arn't errors on there. Also with the income you made this year, your income falls in the low to medium hud income limit for most cities. This means you can qualify for down payment assistance and or closing cost assistance as well as cheap mortgage rates that could be lower than fha. Go to your local hud office they'll give you the info. Usually its under a mycommunity or bettercommunity program

Anonymous · ‎09-19-2007

Keep in mind that lenders are going to look at the last two years of your income. When you're selfemployed they are going to look at your tax returns and use the net income. So you need to ave out your income for the past two years. Good Luck