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Started By
Message
Conventional loan for self employed?
Posted on 4/22/13 at 8:36 pm
Posted on 4/22/13 at 8:36 pm
Graduated with an engineering degree in 2009. Spent 3 years working for a company in california. I interned with them also. Moved back to louisiana and have been running a 1 man llc that consults my former company for the last year. No debt and have 44k in the bank. I'm looking to buy my first home in the 135-150k range. My question is, do i really need to wait another 20 months so i would have 2 years of tax returns? Talked to a motgage person at my current bank this morning. Explained my situation and she said no exceptions. I know that banks are more stringent since 2008, but this seems a little unreasonable. At the pace i'm saving, i'll have 80k by then. More if my wife wife starts working again. I have a 780+ credit score as well.
3
Posted on 4/22/13 at 8:39 pm to man117
Also don't really have expenses for my llc. I just work on the computer all day, so most of what i invoice is my salary.
Posted on 4/22/13 at 8:43 pm to man117
They wouldn't take your tax returns/W-2 from the year(s) before you became self employed?
That sounds stupid. You should take your business somewhere else.
That sounds stupid. You should take your business somewhere else.
Posted on 4/22/13 at 9:04 pm to ZereauxSum
No they wouldn't. I thought it was silly as well. They see my cash flow every month and i told them i intend to put 20% down. I guess they don't want to make loans to people who can obviously afford them? I have no debt at all, so i found this to be strange.
Posted on 4/22/13 at 9:05 pm to man117
Unfortunately this is going to be the case. All self employed borrowers must prove 2 years of self employment income.
Posted on 4/22/13 at 9:16 pm to ds1tiger
I know sometimes there are exceptions though. I mean if i come to your bank asking for a 20k loan so i can buy a 80k piece of property, you're going to tell me no because i've been self employed for only 1.5 years? But if i get fired from my job and get a new job with who knows what job security, you'll give me a loan no problem? Just don't understand how people can do 3.5% fha loans, but i'm not deemed a good borrower. I just thought there may be some loan officers out there that are allotted more discretion. Also what sucks is it's supposed to be 2 complete years for the returns. So the last year wouldn't count for me since i was their employee for part of thd year.
Posted on 4/22/13 at 9:44 pm to man117
I've gotten self employed buyers just with one years tax returns approved. It really depends when we run your situation thru Fannie mae's underwriting system. With your high credit scores, depending on your down payment it could happen. It does suck for 1099,self employed, commission employees. I can ck tomorrow on self employment income requirements. I'm not with a bank, I'm a broker here locally.
Posted on 4/22/13 at 10:07 pm to lsu tigerdog
I would appreciate it. I haven't even started looking at houses yet. Just want to iron out the mortgage details before i start looking.
Posted on 4/23/13 at 12:47 pm to lsu tigerdog
Could the OP get a manual underwrite? Would that help?
Posted on 4/23/13 at 1:39 pm to ds1tiger
quote:
Unfortunately this is going to be the case. All self employed borrowers must prove 2 years of self employment income.
Period. There are no exceptions with traditional lenders.
You can try to work out a lease to own or do owner financing.
Posted on 4/23/13 at 5:07 pm to VABuckeye
NO EXCEPTIONS.....
Lenders want to sell their conventional loans to Fanie Mae so they will not bypass Fed requirents of Fannie Mae.
Your best bet is to find a local lender who will give you an Ajustable Rate Mortage. The rate will not be that much off from conventional loan and you get in the house. After 2 years of 1099 tax returns, you refinance with current lender or shop around for refinance.
Lenders want to sell their conventional loans to Fanie Mae so they will not bypass Fed requirents of Fannie Mae.
Your best bet is to find a local lender who will give you an Ajustable Rate Mortage. The rate will not be that much off from conventional loan and you get in the house. After 2 years of 1099 tax returns, you refinance with current lender or shop around for refinance.
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