Self Employed and need a mortgage.?
I have been self employed for 11 years. I spoke to a few lenders and they all tell me that no one is doing stated income loans anymore.
Here is the deal, I made $52,000 last year and my mid scores hover right around 600. I do not have thousands of dollars in reserves in the bank. and I do not have any cash to put down.
I was told to try ot get my scores closer to 700, but what good will that do if I still don't have a down payment and no bank will help me because my net income after deductions is under $20,000.
I am getting so sick of making good money every year and having decent credit and still not being able to buy a damn house. I dont want to rent forever and move my family every year when the lease expires.
I want someone with mortgage experience to tell me what I need to do. Will I ever be able to buy a house or do I have to rent forever?
BTW: I do not have a co-signer
Oviously average joe doesn't get it. I have 2 jobs allready! I deduct alot to avoid being heavilly taxed. Therefore, my adjusted gross income is lower than my actual income. Anyone that has ever been self employed will have a clue as to what I am talking about. I am stressed enough as it is, I don't need some average joe pretending he knows what the hell he is talking about!
- Anonymous1 decade agoBest answer
Besides beginning to save for a downpayment or making sure that you are leaving enough income in this years taxes to give you a positive net income, it sounds like the best option for you would be a bank statement loan. This will still require a down payment but if you find an aggressive lender it may only be 5%-10% verses 20%-30% that a stated loan would require. This is a loan that will take your bank deposits over the last 12 or 24 months and use 75%-100% of your average months deposits as your income. Most lenders want to see that this is a personal account but some will even allow it to be from your business account.
Knowing what the lenders are looking for will make it easier to know if you are close or what you need to be qualified for a loan. Most lenders want you to be around 30% on your top ratio (which is your house payment (principle, interest, taxes and insurance) divided by your monthly income. Then they want your bottom ratio (your house payment plus all other bills that "show on your credit report") divided by your income to be around 40%. Some loans will allow you to go a little higher. Depending on your credit some automated approval systems will allow you to be much higher and still give the approval because of your compensating factors.
My advice is to contact a Mortgage Broker that has a lot of lenders at their disposal because they will have much more lenience then if you go to a bank that can only offer their products and loans.
I would love to help you if you are in NC but even if you aren't, feel free to contact me and I will be happy to work with your numbers and give you any advice that I can. Good luck ;0}
- average joeLv 51 decade ago
why dont you pick up a second job to raise your income?? lenders are not lending to just anyone right now.. raise your income to get a down payment together.. .you say that you have a family, have your spouse get a second job to raise your income... no one should have to "GIVE YOU MONEY" you have to work for it... i wouldnt lend you money if you only make 50k per year and only have 20k to spend.. get a smaller house for a while so you dont need such a large loan.. I am on the banks side and you dont want a co-signer and you dont need to put anyone in that position...