This is unfortunately the way self employed borrowers must ask this question because of the underwriting standards and the box us lenders put them into. This is always a very complicated process for them to be approved but here is some simple ways to find out if a self employed borrower has a chance.

1. Have you been self employed for 2 years?

2. What is your bottom line on your tax returns? (lenders will add back in some depreciation BUT if a borrower writes off a lot on their taxes then lenders will look at the same for income.)

3. Does your business have a license and can we have a third party like a CPA verify your past 2 years work?

4. The rest is your credit, and do you have money (assets).

There is definitely a lot more involved, but at least the above can help get a person started. Looking for any more comments on this and see if there is anything else people have ran into.

Have a wonderful time in this 2010!!!

For first time home buyers, this is a common question that is either asked or going through their minds. Hopefully I can give you some helpfull information to this question. Lets think of the reasons why people rent, and please add a comment so I can hear some more reasons.

Renting

1. Don’t know where I will be living over the next few years.

2. Cheaper for me to pay rent then owning.

3. Cheaper to live in an area I like.

Now lets talk about why you want to buy:

1. Putting money into a investment for the future.

2. Having control over the place I call home.

3. I can deduct the interest I pay each year.

4. I can make the home into my style.

Which category do you fall into? Anyone can buy a house with the proper plan in place on how to accomplish it and their true passion for it. You might not get to purchase now……but maybe it will take 3, 6, 9 or even 12 months, if you truly want to be a homeowner and ready to take the steps towards the finish line.

Just a few more things, consider your home value over time will increase and rents typically increase. Home value increase is money in your pocket and rent increase is money in someone else’s pocket. Even though your monthly mortgage payment is going off to a lender, some of it is still going to you were as with rent, that check is going into Joe Smiths bank account.

Now home owner ship is definitely not for everyone as we have seen over the past 2 to 3 years during this market. If you feel like taking on the responsibility of home ownership and plan on owning your home for at least the next 5 to 30 years, then grab that home of your dreams.

Think of anything else or have any questions, look forward to hearing from you.

Hope this helps, Have a glorious day!

This is a common question that comes up and each situation a borrower might need a little bit more information depending on the underwriters opinion. Here is a general list to go by that will help your home loan or mortgage process go smoothly.

1. A fully executed agreement of sale for the property being purchased

2. A HUD-1 settlement statement on the property you are selling

3. Copy of your most recent pay stub and going back at least 30 days worth

4. W-2’s for the past 2 years, and tax returns (might or might not be needed)

5. Copy of the rental lease, if this applies

6. 4506-T form completed. (This is an IRS form that will be supplied)

7. Homeowner’s insurance policy, you don’t have to provide upfront unless you already have a policy in place.

8. Flood insurance policy if you are in a flood zone.

9. Past 2 years of where you have lived

10. Past 2 years of where you have been employed

*Self employed borrowers will need to also provide: Copy of business licenses or 3rd party proof of business. 2 years worth of Tax Returns. Also, you must have been Self Employed for at least 2 years…..yes you can technically get a home loan or mortgage with less then 2 years self employed BUT, would matter on the time of year and how much you made in the one shortened year you started being self employed. Your profit & loss statement from your business. A letter from your CPA or professional tax person confirming you have been self employed for 2 years.

Who is considered Self Employed?

If you own greater than 25% of a business, the mortgage underwriter will consider you to be self employed.  The underwriter will consider you to be self employed if you file a 1040 schedule C for your job income, are an independent contractor, or your employer does not take out any income taxes.

I hope this helps

What is the Lowest Down Payment for a Home Loan?

I have seen this question asked a lot lately and only met with a quick answer……..go FHA 3.5% down. Yes, this is a correct answer but there are several more options that many people either don’t know about or don’t care to explore with the borrowers. Today I give you the OTHER programs.

1. VA loan 102% LTV (loan-to-value)

This is a Veteran Affairs loan for, you guessed it, our military. If you are currently in the military or a veteran well, they have a pretty nice loan for you. For more information on this just ask me or visit VA’s website.

2. USDA loan 102% LTV

No you don’t have to be on a farm and no this is not a loan so you can buy some cattle. The USDA has financing available for homes that are located in RURAL areas. Thats right, the catch is the property must be classified being in a rural area by an appraiser in order to get financing. Wonderful program for those who fit that box!

3. $100 Down FHA REO

Not to many people know about this program but that is no type-o…….only $100 down and you can get a house! You might ask, “What is the catch, their is aways a catch?” The catch on this program is that you can only by FHA real estate owned properties that qualify for the $100 down. So instead of going out and finding a property you want, you only get to pick from FHA’s list of properties. Hey, its only $100 down and you might find the property you wanted on the list, so give it a shot.

4.  3% down, No Appraisal, No Mortgage insurance Fannie Mae REO.

Same concept as the FHA REO’s but you are looking off Fannie Mae’s REO list of properties and looking to see which ones qualify. Again, this is not a bad option if you want to take advantage of the tax credit for home buyers and not worrying about an appraisal and mortgage insurance.

5. 3.5% Down, FHA regular loan

Ah yes, and now back to that answer for the question of , “What is the lowest down payment for a home loan?” Well, this is the product everyone defaults to and is still a good option.

I hope this helps, and let me know if you have any other questions.