Posted on: 30th Nov, 2010 09:46 am
My husband is newly self-employed and makes our primary income (i am also self-employed but very part-time). We own a home now that we would like to get out of to get in a better area, but are underwater. We've been planning to rent it out and rent our next house until we can sell this one and buy another, but then realized that renting a bigger house may be a 'waste' of money when we could stay here and save all that extra money for an eventual down payment on our next house that we could actually buy. So I'm excited about that prospect but then started researching loans for the self-employed and it's not looking good.. Obviously stated income loans are a thing of the past.. and with a new business there are many completely legitimate deductions that will make our annual income appear lower for a few years. Even years down the road, there will always be deductions with this business.
I was reading this article about the topic (can't link it) and reading the comments it I'm really discouraged (and it was written a while ago and aren't things even tougher now?). Some of these people have much higher incomes and have been self-employed for many many years, lots of money saved and still can't get a mortgage. Here I was hoping if we could sell our house in about 3 years (we're close to being able to break even) we'd be able to qualify then. If we could get a cosigner, does that only help with credit (our credit is good) or can it also help w/the income issue?
Thanks for any advice!
I was reading this article about the topic (can't link it) and reading the comments it I'm really discouraged (and it was written a while ago and aren't things even tougher now?). Some of these people have much higher incomes and have been self-employed for many many years, lots of money saved and still can't get a mortgage. Here I was hoping if we could sell our house in about 3 years (we're close to being able to break even) we'd be able to qualify then. If we could get a cosigner, does that only help with credit (our credit is good) or can it also help w/the income issue?
Thanks for any advice!
Some stated income programs exist with local banks in speciifc states and/or specific counties. Those that do exist require a down payment at least 30%
If you would be purchasing years from now, no one knows if there will be more or fewer stated income programs for self employed.
Coborrowers can help with the income. They never help with credit.
Freddie Mac and FHA mortgages allow income from coborrowers to help you buy a house. You must also count their debts, so, their income needs to be high enough and/or debts low enough so they actauly help.
If you would be purchasing years from now, no one knows if there will be more or fewer stated income programs for self employed.
Coborrowers can help with the income. They never help with credit.
Freddie Mac and FHA mortgages allow income from coborrowers to help you buy a house. You must also count their debts, so, their income needs to be high enough and/or debts low enough so they actauly help.
