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Self Employed and can't get Bank Approval

I'm a self employed minister working with a small local church. So small that I receive income from other churches.

How can I get banks on board? I do not have a regular W-2.
Is there a self-employed mortgage program I should look for?
  • January 11 2013 - Albany
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Answers (6)

We have two programs for self-employed. The 12 month bank statement program is the most popular. What we do is add up the deposits over 12 months and that is your income (if personal acct.) or we take the deposits minus withdrawals (expenses) for your business account. No tax returns are needed for this program.

We also have a one year tax return program so If you claim all of the income on your taxes for a year we can use just that year to qualify.

These are both 30% downpayment programs which may be tough for some. The other option is to claim all of your income on your tax returns for 2 years and you could qualify for any type of mortgage.

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  • April 26 2014
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A lot of lenders will use your business write-offs/2106 Expenses against you.  [self promotion deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • April 22 2014
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There are programs available that offer little to no doc options. They carry higher rates and shorter terms. Depending on the state the property is in, the program may not be avail for owner occupied properties. [self promotion deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • April 22 2014
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There are still ways for you to get a home loan, although they might be a little more difficult and more work from your end.

Like yourself us Realtors are self employed so it is a struggle when we try to get a home loan. Some banks offer portfolio lending where the bank will hold all the risk themselves and not sell your loan.

Did you file your taxes in 2010, 2011 and 2012? If so you should be able to show your income from your tax returns and that would be the way to go.

If you look at my profile in my Top 10 there are some great lenders that I use that will be able to help you out.
  • January 11 2013
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The old days had the good ol No Doc loan where people self employed told the loan officer what they made and the lenders took them at their word with no documentation. Well, the bank collapse which was brought down by a lot of these loans, ended the No Doc loans for now. Lenders now must prove income and credit and more to get that loan.

tim
  • January 11 2013
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If you have 2 years of tax returns showing this income stream, a bank should be on-board.  Visit with a local bank and they are more likely to provide your financing.  

Best of Luck,

Josh Barnett, Realtor
  • January 11 2013
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