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self employed but I have been in the same industry for 12 years. Will this be a problem?

by lauren.pearsons412 from Mission Hills, California. Feb 10th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

More info needed.. specifically, how long have you been self employed? And are you profitable? Guidelines require you have 2 full years of SE income to qualify.. however there is a program that allows you to obtain financing if you have been SE for one ENTIRE year (365 Days) for 2015. They will verify this by what's on the 2015 tax returns, as well as ask for other supporting documentation such as trade name registration, date your business account was opened, advertisement receipts etc.. The 2nd hurdle will be profitability. Typically, new business owners show a loss in the first few years.. but to qualify for a loan, you have to have income.. What ever you list on your taxes, is what the lender will use to determine your qualifying income for Debt to Income calculations.. You could have brought in $1M in revenue, but if you wrote off $999K, then $1000 is your qualifying income and most likely will not be sufficient to purchase a home. The best advice I can give you is to 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

Feb 10th 2016
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