Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for user50433193

Mortgage options for the self employed with minimal shown on tax returns?

I'm self employed looking at a second investment property but have minimal income shown on tax returns. First investment property is payed for, valued at 70k. Second property looking to purchase is valued at 120k, with purchase price of 100k and will put 20-30% down. The property has an eleven year tenant paying $900 a month with no plans to move. I have credit scores in the high 7's to low 8's. Being self employed I take full advantage of my right offs and therefore don't show much income on tax returns. Any lenders out there for a self employed person with plenty of cash flow, reserves and good credit?

Thanks
  • August 26 2013 - Charlotte
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

For a Traditional Loan, you can only qualify based on your verifiable income and your Federal 1040s are what we have to use. Now believe it or not, there are some Portfolio Products out there i.e. SIVAs and NINAs if you have 30% down or more. But don't cry about the rates not being in the 3s, these are high risk loans and the rates are reflective.



  • August 26 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It depends on what you mean by 'minimal' income.  We are allowed to add back depreciation - so that may help some in addition to the current tenant's payment.  Do you have a tenant in your other property?  Please feel free to email me with any questions that you may have and I'll be happy to help!

Heather Peake
Mortgage Specialist
Statewide Mortgage
[contact information deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • August 26 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Reducing the tax is a double edged sword and it cuts in both directions. You might save some taxes, but it hurts the chances for a loan.
  • August 26 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.