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Looking for a lender, first time home buyer.

I am self employed and my taxes do not reflect my actual income. I have no problem not taking all of my deductions for a year. Does anyone finance with only 1 year tax returns? How much do I need to show to qualify for a $220k home? by cybot1rain983 from Overland Park, Kansas. Jun 28th 2017 Reply


Sara Deere (Saraloveshomeloans)
#1 ranked lender in Kansas - 511 contributions

More information is needed. Why only 1 year of tax returns showing your self employment income?

Jun 28th 2017
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,560 contributions

It is common for small self employed people to have problems getting home loans due to writing off too much of their income. Great for taxes, bad for mortgage loans. It is possible to maybe only use one year of tax returns. No lender can tell you for sure until we take a full application and run it through underwriting computers. You may get lucky, don't don't count on it. There are programs that base income on bank statements. Bigger down payments and highers rates come with bank statement programs. Finally, you can generally afford about 4 times your income. So roughly in most cases, and income of $55,000 would let you buy a $220,000 home. Learn more about self-employed loans at http://joemetzler.com/self_employed_homebuyers.htm

Jun 29th 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,008 contributions

Much more info needed.. qualifying income is determined by analyzing your income AND your debt.. some debt can be ignored (car payment paid by the company, or certain payments on debt that will be paid off inside of 10 months, etc..)... other debt must be included even if it's deferred (student loans).. we even have to include "Phantom Payments" on unpaid collections,,, I could go on, but without looking at the full picture it's impossible to advise.. That being said, if you are S/E and taking advantage of all the write off's, it can be difficult to obtain financing if you don't show enough income to service all your debt and stay within the lenders maximum debt to income ratio. If you've been in business for 5+ years, then there is a lending program that only requires 1 year of tax returns,,, but again, there are caveat's associated with this program as well.. For example.. if you have a long term carry over loss then the lender might ask for 2 years returns to support it.. again,, your scenario is not unique, but it is impossible to advise you without looking at the full picture. The best advice I can give you is to contact a mortgage bank/broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with a Banker/Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the banker/broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the big box banks. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Jun 29th 2017
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