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Can I buy a house as a IT Contractor?

I contacted a lender to pre-qualify for a home that I want to purchase in another town where I just started a new contract that pays exceptionally well.  I have no debt with the exception of my current house which I will be renting for quite a bit more than my monthly payment.  My credit rating is exception and I have a large down payment.  He said everything was great but no bank would give me a loan because I am a contractor.  We didn't discuss whether that mean W2 or 1099.  He may have assumed 1099 but I am on a W2. I am single so there will be no one else on the loand.  Can I get a loan? 

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October 19 2012 - Central
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Answers (4)

YES.

Continuous employment contracts and tax returns will be key.


Best Wishes!
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October 24 2012
First, to answer your question - Of course you can buy a house as an IT contractor. It's just that lending criteria vary from lender to lender. Generally, it's easier to get financed if you have good credit versus poor, and they will want a history of decent income, and a verifiable expectation of future income. We see this happen to a lot of our clients that go to their bank for mortgage advice. We work with some folks that lend directly, and usually have a more open approach to financing, since they have direct investors providing the funds. They are also very familiar with the IT Industry we have here in Raleigh, so it seems like they might just be the thing you are looking for. We'd be happy to put you in touch with them directly.
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October 20 2012
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Thanks for the feedback. I work for different agencies on a W2.   One agency for the year 2010 and 4 months.  Another company for the 3 month and 8 month contract.  So two agencies over the last two years.  
I am not self-employed.
He said if I had worked for the same agency over the last two years then MAYBE I could get an exception.   He never asked about my tax forms for the last two years.  It didn't seem to matter how much I made. He recommended I change jobs and get a full-time position.    
It is hard to believe that the solution to getting a home is to take a lesser paying perm job.     
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October 19 2012
Usually lenders (in my experiences in the past) have given my self-employed clients loans based on an average of 2 years worth of income...but maybe the times have changed, I don't know.  You are on a W2 because you work for someone, or you own the corporation and pay yourself with a W2? 

I highly suggest you contact another lender because that story sounds fishy to me.  If you are looking to buy in California I can give you a few loan officer's informations I have done business with in the past so that you can discuss your scenario.  Most of my self employed clients pay all cash now (they got rich in the boom) so finding a solution to your scenario will be useful to me as well for future business.

Best wishes from So-Cal
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October 19 2012
 
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Can I buy a house as a IT Contractor?
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