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Buying a home in Brooklyn, NY as a self-employed, first-time buyer - need advice!

I'm looking to understand if buying a home in Brooklyn is possible for me and my husband. We've lived in Brooklyn 7 years and have been self-employed for 2.5 years now. 

I'm looking for guidance on how to pre-qualify for a loan and how to start the process. I'm not sure what we would qualify for at the moment, or what we could do to increase our options to buy in 1-2 years. If anyone has advice, recommendations of loan officers and real estate agents, specifically experienced with self-employed business owners, I'd greatly appreciate it!
  • April 24 2014 - Brooklyn
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Answers (5)

Hello Murphy,
  when you are buying a home as a self employed individual you need to keep in mind your tax returns. A lot of business owners show great income monthly but at the end of the year right off a bunch of expenses.  so when you choose a lender to get qualified make sure he is collecting all of the appropriate and necessary documents to actually approve you. The lender would like to see 2 solid years of tax returns regardless of being a 1099 employee or W-2. This will come into play when getting an approval, as well as debt to income ratio, credit score and intended down payment. Just make sure you get a referred lender from a family or friend that is honest, responsive, attentive and friendly to service your needs. Good luck!
  • August 22 2014
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Dear Murphy,

It really doesn't matter of you are self employed or 1099, the more important question becomes how much income are you showing? Ultimately, the amount of money you can borrow wil be based on how much income you have regardless of where that income comes from. The income simply has to be verifiable. If you do not have verifiable income you will have a problem. Even if you find some bank willing toi lend you the money, you will probably have to pay an exorbitant interest rate which would make buying impractical regardless.

If you want you can contact me and I can provide you with some lenders who can get you the correct answers... in the end it all boils down to your qualifications. Either way, speak to some mortgage bankers and they will be able to help you.

Sincerely,
Mitchell Feldman
Associate Broker
Fillmore Real Estate
  • April 24 2014
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Hi Shake123

As far as lending documentation you will need 2 years personal and business tax returns, CPA letter, (type of business owned, how long you are in that line of work, etc) 1040 with all schedules attached, Banking statements, etc for both of you

How is your credit? Whats your actual middle credit score? When was last time you ran it for BOTH of you if both of you are on loan

There are still some questions that can be asked, (Partnership? General? Limited? LLC?) S corporation? but this can help start getting the ball rolling, we are local lenders right here in NY and would be more than happy to assist you, - hope this helped a little, please feel free to reach out!



  • April 24 2014
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Murphy....Credit and down payment are obviously important but for self-employed individuals it a lot of times comes down to your tax returns.  Sounds like you have been self-employed long enough so you will need to talk to a mortgage professional and supply him/her with 2012 and 2013 tax returns.  Would be more than happy to help if you would like to contact me through my profile.
  • April 24 2014
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Profile picture for Francis Ignacio
Hi Murphy -
 
Kindly click the link below your question (See official guide) for reference. 

You can also visit our Zillow Help Center/Zillow Agent Help Center for other helpful information.

Thank you.

Francis Ignacio
Zillow Customer Support
  • April 24 2014
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