Posted on: 13th May, 2009 04:24 pm
My husband wants to buy a condo unit because of the great deal.The problem is both of us never filed for tax returns before,because we are both musicians and getting paid by cash.Can't do the stated income,so he needs to show something.So someone told him that, if he files for tax returns,about 100k total for last two years,and with 10% down,that he would get a loan of 160.000 that he is looking for.He is aware,of the late filing and penalties that he would probably end up paying close to 25k including money owed to IRS.I'm a big sceptic about all this because,any lander might not want to take a risk,when they see that you never filed taxes before and all of sudden you filed for two years after the dead line for tax return is passed? And of course,if he got denied for that loan,he still got a pay 25k-30k to IRS,for filed income,penalties,etc... that he never had to do it.
So please what are your thoughts on all this? Thanks.....
So please what are your thoughts on all this? Thanks.....
I think your best bet here is to find a place where the owner is willing to hold the mortgage. You do NOT want to go back and pay those taxes.
i think it's about time you filed a tax return. getting paid in cash does not eliminate the requirement.
eric has a good point, but if you wish to obtain conventional financing at some time, you'll have to bite the tax bullet and file.
eric has a good point, but if you wish to obtain conventional financing at some time, you'll have to bite the tax bullet and file.
George, it seems to be very common with musicians. I know quite a few who are in a similar situation....all cash.
no doubt...plenty of other occupations too, i'm sure.
Thanks guys for reply,
I don't mind paying it,but what really chance do we have getting a loan in such a situation,would any lender take risk with us? btw both our fico is 700+
thanks...
I don't mind paying it,but what really chance do we have getting a loan in such a situation,would any lender take risk with us? btw both our fico is 700+
thanks...
opacupa, there are probably lenders available that will work with you, and i say that especially in light of your credit scores. you will be limited, however, because virtually everyone who deals in conventional or government loans is going to be looking for either tax returns or the ability to pull transcripts of your tax returns. without having filed returns, your field of lenders will be limited to those who are less fussy.
frankly, i think you're looking at hard-money lenders, and that's going to mean a substantially higher cost than you would find in a normal situation.
frankly, i think you're looking at hard-money lenders, and that's going to mean a substantially higher cost than you would find in a normal situation.