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719 Credit Score, Substantial Savings, but Intermittent Independent Contractor Income - is an FHA Duplex or Triplex a Possibility For Me?

I'm worried about how my income situation looks in regards to being approved for a mortgage. I have dry spells with little work as an independent contractor at intermittent times, but my savings are quite substantial and I have ample reserve... I'm hoping that with my high credit score might make up for my income. Is this possible for me in the southern California region? by AlwaysAndForever0... from Aliso Viejo, California. Jan 19th 2017 Reply


John Paul Mulchay (JohnPaul)
#42 ranked lender in Nevada - 8 contributions

FICO score alone cannot offset an income challenge. Today's lending environment requires that your "Ability to Repay" is properly analyzed and documented via tax returns, paystubs, etc. along with a review of your liabilities. Then your new, proposed mortgage amount is added to see if you qualify.The intermittent income isn't a deal breaker either. Likely, a 24 month average of your self-employment will be the foundation for calculating qualifying income.

Jan 19th 2017
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Joe Patterson (joepatterson@princetoncap.com)
#978 ranked lender in California - 5 contributions

As a 1099 contractor, your income is averaged over 2 years and is based on your tax returns (Schedule C). You may have to have a larger down payment to offset the average income lenders use but you also get 75% of the potential rent from the property to help too.

Jan 19th 2017
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Ray Fisher (ray@ourcovenant.com)
#1013 ranked lender in California - 5 contributions

we have programs that verify gross income with bank statements, no tax return, this can often help qualify. Let me know if we can be of help.Ray Fisherray@calmortgage.net

Jan 19th 2017
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Larry Gray (lgray_312_247)
#566 ranked lender in California - 1,127 contributions

I might add that besides averaging your income out over 24 months, perhaps a profit loss statement year to date, and looking at calculating income off of your reserves, a rent analysis will be made to help determine how much rent can be used to offset the PITI monthly payment on the new purchase loan. Having done enough loans for independent contractor, qualifying based on self employed net income can be challenging but quite possible.

Jan 20th 2017
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Larry Gray (lgray_312_247)
#566 ranked lender in California - 1,127 contributions

We also do home purchase loans using cash flow for qualifying instead of qualifying you on your net income! That could be a primary or investment property.

Jan 20th 2017
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,250 contributions

I have a way to loan funds without using your income lindaonthego@outlook.com 602 330 1598

Jan 21st 2017
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