Posted on: 25th Mar, 2009 11:54 am
i have been in the same industry for 15 years, but have been self employed for the past 2 years due to my new boss hiring me as an independent contractor so that he doesn't have to pay taxes/work comp etc on me. i like my job and my boss, but i am finding that because of how he has me hired, it is now impossible to refinance my home or my rental home, because i write off vehicle/mileage and other things which can't be "added back in", so i am showing a loss at the end of each tax year.
do i have any options? my ficos are above 700.
i have posted online, called big banks, local banks, credit unions etc ... and it is always "sorry, no".
the interest rates i am paying now are 8.125% on a $150,000 3/1 arm that is due to hit 3 years in june, this is on the house that i live in in missouri. and 10.25% on a $70,000 (unknown terms, i can't remember but i think it is bad too, coming up on 2 years now) on my investment house. those high interest rates is why i am really desperate to refinance. selling the rental home in the current market is a last resort, it is in las vegas.
my husband works but it is as a buss boy/server, so he has a lot of undeclared tip money, he is minimum wage other than that, so no major income there.
we live very frugally, hunt, fish, grow my garden, don't go out, we are not the typical money spending people, so the economics of the country are not really affecting us. but we are barely making it, we are always a bit behind and that better refinance options out there would greatly make our lives easier.
we have some home improvement things we need to do (windows, yard, probably $10,000 would take care of it all, $20,000 if we could do the deck and barn repairs too), would we even qualify for a heloc?
would anyone be able to help us?
do i have any options? my ficos are above 700.
i have posted online, called big banks, local banks, credit unions etc ... and it is always "sorry, no".
the interest rates i am paying now are 8.125% on a $150,000 3/1 arm that is due to hit 3 years in june, this is on the house that i live in in missouri. and 10.25% on a $70,000 (unknown terms, i can't remember but i think it is bad too, coming up on 2 years now) on my investment house. those high interest rates is why i am really desperate to refinance. selling the rental home in the current market is a last resort, it is in las vegas.
my husband works but it is as a buss boy/server, so he has a lot of undeclared tip money, he is minimum wage other than that, so no major income there.
we live very frugally, hunt, fish, grow my garden, don't go out, we are not the typical money spending people, so the economics of the country are not really affecting us. but we are barely making it, we are always a bit behind and that better refinance options out there would greatly make our lives easier.
we have some home improvement things we need to do (windows, yard, probably $10,000 would take care of it all, $20,000 if we could do the deck and barn repairs too), would we even qualify for a heloc?
would anyone be able to help us?
Unfortunately the media and our political leaders are trying to call a stated income loan a "liar loan". They say that these types of loans are fraudulent and shoudl be illegal.
This is why no banks or lenders are offering you a loan program if you can't document your ability to repay the loan.
I'm sorry to say but I don't know of any bank that can truly offer you cashout at a better rate without being able to document your income.
This is why no banks or lenders are offering you a loan program if you can't document your ability to repay the loan.
I'm sorry to say but I don't know of any bank that can truly offer you cashout at a better rate without being able to document your income.
I don't need a cash out refi, I would be perfectly happy with just a standard refi! No luck there either?
Once again. Here is the "sorry, no". That is the price we pay for writing off expenses. If you are showing a loss then you can't refi.
If you can show hardship, it never hurts to call up your lender and ask for a modification.
Good luck!
If you can show hardship, it never hurts to call up your lender and ask for a modification.
Good luck!
thanks for the replies ... so if I switched jobs, or had my boss change me to a W-2 employee (I haven't asked him yet so I have no idea if he will yet), how long would I have to be a W-2 before I could qualify for a refinance?
I was in the same situation and I am currently undergoing a refinance with a small local bank that holds its own papers. You should do some research for these kinds f banks or even credit unions. They will be able to help as long as you have tax returns for the past two years whether its stated or not. I hope this heps
I was in the same situation and I am currently undergoing a refinance with a small local bank that holds its own papers. You should do some research for these kinds f banks or even credit unions. They will be able to help as long as you have tax returns for the past two years whether its stated or not. I hope this heps
working in insurance we have a lot of contacts with mortgage companies, banks and credit unions. But I have called every big bank, local/small bank, and credit unions as well .... they all say that even their "in house" companies won't touch anyone self employed who writes "too much" off. This has been a 3 month search, and every time I think I am getting close, my hopes get dashed. Can you possibly share the name of the bank you are using? I happen to be in Missouri, but also have a house in Nevada that I really need to refinance as well.
thanks for the replies!
thanks for the replies!
I don't think there are hardly any banks offering stated income loans or refinance. Let's hope that jquils come up and let us know small local bank which has helped him/her in refinancing the loan.
My suggestion to you would be to refinance your current loan ( stated income) to a much lower rate WITHOUT cashing out. You will see huge monthly savings when you consider the interest rates that you currently have. I would take those monthly savings and put them towards your home improvements. Make those improvements gradually.
This is a much better scenario for you than trying to cash out $10k-$20k for odds and ends around the house and then paying for it for the next 30 years. Not to mention the fact that you will have a higher rate when you cash out $$ and that higher rate will also be applied against the remaining $220k of your total mortgage balance. So, the true cost of your "cash out" is huge.
This is a much better scenario for you than trying to cash out $10k-$20k for odds and ends around the house and then paying for it for the next 30 years. Not to mention the fact that you will have a higher rate when you cash out $$ and that higher rate will also be applied against the remaining $220k of your total mortgage balance. So, the true cost of your "cash out" is huge.
Stated Income Loans ARE STILL AVAILABLE!! I have a few local banks offering them within the Tri-State area, and I know of a few others throughout the country. With that said, the loans are obtainable up to about 70-75% of the homes value. The lenders are going to require you to sign a 4506-T form, which verifies that you did file your Schedule C's last year. I hope this helps....
Have a 5-year ARM; 2 years remaining; was obtained as a stated income loan; want to convert to 30-year fixed; no new money. I am self-employed; sole owner of a small corporation; Work out of my house; I use 3 to 5 subcontractors on a 1099 basis. My company grossed over $200,000 in 2009; headed for more than $250,000 in 2010. I do not show a lot of personal income via a W-2; live in Georgia. Know any lenders doing stated income loans??