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Need help with self employment and loan. Income is too little after deductions. Anyone have a way around this?

by bill739 from Oxbow, Oregon. Jun 8th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Without looking at your tax returns, it's hard to say for sure. Certain expenses can be deducted from your perosnal obligations which would raise your income for qualifying purposes.. and there's also certain deductions that can be added back in as well.. but Unfortunately, there's not much you can do when it comes to conforming loans. President Obama signed into law new rules regarding borrowers requirements to show they have the ability to repay.. Conforming loan programs must use tax returns & W2's/ 1099's to verify your ability to repay a loan.. so what ever you claim for income on the tax return, is what the lender uses for qualifying purposes.. There are "Hard Money" lenders who might use 12-24 months bank statements as supporting your ability to repay, but this all comes at a cost.. They will require larger down payments, typically 30% or more, and higher loan costs and fees as well. if you want to know for sure, you should contact a LOCAL mortgage 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 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. 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 NMLS# 226347

Jun 8th 2016
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