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Mortgage for an independent contractor

I am a sales rep for a larger company but I'm a 1099 employee, and so is my wife so just using her income is not an option. We both have good credit, just don't know where to start. After a bad experience with Chase we are seeing if maybe going through a mortgage broker would be better? Thoughts? by hellovera7943423 from Urbana, Illinois. Nov 13th 2014 Reply


John Paunan (jpaunan)
#23 ranked lender in Illinois - 22 contributions

As long as you have a 2 year history of the 1099 income and that you actually claim enough in adjusted gross income on your tax returns, then you should be fine. And I would definitely recommend working with a mortgage broker rather than a mega-corporate lender. Go small and go local!

Nov 13th 2014
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

John has given you good advice. Follow his suggestion.

Nov 13th 2014
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Hello,I am a l local Mortgage loan officer. We work with over thirty different banks to get you approved. Most banks will be looking for 2 yr consistent work history for approval. If you do not have a 2 year work history the are some other options. Let me know if interested

Nov 13th 2014
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Sam Perez (SamPerez)
#47 ranked lender in Illinois - 34 contributions

Thanks for your question. I'm sorry to hear about your bad experience with the Chase. Big banks typically have overlays to standard underwriting guidelines which leave many good qualified borrowers without a loan. A good loan officer no matter who they work for should at least know their own company guidelines and tell you from the beginning whether or not a loan with their company is feasible. We take the 2 yr average of your adjusted gross income reported on your tax returns. Being that it's the end of the year we can take last year's returns and a YTD Profit & Loss Statement. I'd be happy to take a look at the scenario and let you know your options. Thanks. -Sam

Nov 13th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,055 contributions

So long as you have been receiving your 1099 income for 2 years or more, then it's not a problem.. and your experience with Chase is exactly why I always advise folks to seek out a local mortgage broker.. by applying with your LOCAL 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. ( I work with 21 lenders) 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 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 larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Nov 14th 2014
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

Lenders generally have to follow the same guidelines, and sometimes brokers actually have more stringent requirements to meet because the have to sell your loan to Chase or another direct lender. You'll need at least one and preferably two years of IRS tax returns but remember it is your income after expenses (not including depreciation) that counts to qualify you. Try talking to another lender, broker or direct, about your situation - sometimes it just takes a more knowledgable loan officer to find a way to get you approved. Good luck!

Nov 15th 2014
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