Posted on: 04th Apr, 2010 09:05 pm
Hello, Im self employed. I have 2 years of taxes + a few years before that of where I had a steady job. I know a lot of lenders are being more strict about down payments and need atleast 10% down. However, I am a first time home buyer. Im looking at a house that is $49,900. Some lenders look at your gross income- total income, whereas others look at total income minus deductions. I would need a lender that would allow less than 10% down, and look at my total gross income in order to be approved. I know I can afford the payments. I was paying high rent last year and was doing fine. By the way I have a 709 credit score.
Let me know if you know of any lenders that might match what Im looking for.
Let me know if you know of any lenders that might match what Im looking for.
You can apply for a FHA loan wherein you will have to give a down payment of around 5%. As far as the income requirements are considered, the lender will look into your gross income to give you a loan. You should contact FHA lenders of your area and apply for a loan. You can even speak to the lenders of this community and seek a no obligation free mortgage consultation. This will help you know whether or not you would qualify for a loan.
I checked with them. They need 3 years of tax returns if youre self employed. I only have 2. :(
i think you checked with the wrong lenders. there's nobody that needs 3 years of tax returns who's doing fha loans. the general policy is to review the most recent 2 years. your job history prior to that ought to be sufficiently good enough anyway.
the only reason i can see you needing a third year is for a particular type of program. for example, in connecticut, there is a first time homebuyer program that requires 3 years' tax returns in order to verify that you've not claimed any home-related expenses on your returns. they don't use the third year, however, to document income in the least bit. if that's the sort of program you're investigating, then the third year makes sense, but it won't prevent you from qualifying with your 2 years of taxes.
i hope i've made sense here.
the only reason i can see you needing a third year is for a particular type of program. for example, in connecticut, there is a first time homebuyer program that requires 3 years' tax returns in order to verify that you've not claimed any home-related expenses on your returns. they don't use the third year, however, to document income in the least bit. if that's the sort of program you're investigating, then the third year makes sense, but it won't prevent you from qualifying with your 2 years of taxes.
i hope i've made sense here.
