Zillow Advice: Buying Process - Getting qualified for a home loan on self-employment income http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ Zillow Advice | Zillow Real Estate [promotion deleted by Zillow ... http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ <em>[promotion deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]</em><p>Danton Paul<br/>Sr. Loan Officer<br/>PacTrust Bank</p> Tue, 06 Aug 2013 00:24:00 GMT http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ 2013-08-06T00:24:00Z Why not wait? Why not pay ... http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ Why not wait? Why not pay of the cars and credit cards? An entirely new scenario will open up for both of you. If he is self employed work on getting the salary In a better position for the next years return and try to get rid of some of the debt. In the long run you will still be ahead. Even if rates go up, and of home prices rise a little, it is still a better position for you. The cost of carrying simple interest loans and car loans is far more expensive . Just as an example approx 477 a month is $100,000 of mtg power. If you have credit cards and cars loans that are double that as most people do, you are keeiping yourselves from a min. of 200,000 of leverage. Wait, payoff debt , try to save, and increase your 1099 income. It is much easier to qualify without any obstacles. Best wishes Suzie Sun, 24 Jun 2012 23:36:00 GMT http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ 2012-06-24T23:36:00Z I was a lender for 10 years ... http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ I was a lender for 10 years and had a lot of self employed customers. I'm not sure who you worked with on the lending side but I could recommend a few people. The lenders have gotten very conservative on lending but in general if you are self-employed and your income was lower in 2011 than previous years, the underwriter will probably just go off of the 2011 income only (unless you and explain why it was an off year and you can show a year to date income showing back to "normal" income). You can provide 2008,2009 income returns as well to show history of higher income. In regards to the credit cards and car, IF you can prove 12 months of history that the business is paying for it (being paid from a business account) or it shows up on the tax returns as business expense than this should not be counted against your personal debts in qualifying.<br/>Hope this helps a little... trying another lender if you are getting conflicting information... Sun, 24 Jun 2012 21:55:00 GMT http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ 2012-06-24T21:55:00Z I would ask my buyer agent ... http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ I would ask my buyer agent to refer me to one of the lenders he/she works with and discuss the situation.&nbsp; You do not say specifically how many lenders you have discussed your case with and whether they are credit unions, banks or mortgage brokerages, and it does make a big difference.&nbsp; Also, you do not say the type of work your husband does and that too makes a difference.&nbsp; Could you share with us what the lenders had to say, and what do they recommend you do in order to be able to obtain a loan?&nbsp; Also, you do not say when did you file Chapter 7 BK?&nbsp; Sat, 23 Jun 2012 15:22:00 GMT http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ 2012-06-23T15:22:00Z They asked for the last two ... http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ They asked for the last two years of tax returns and we were trying for a FHA loan. He does have a history of strong earnings, 2011 was the first year he had taken a loss. We went to a broker thinking they would be more creative, but the person we worked with didn't seem to be&nbsp;very savvy nor did he give us any guidance. Thanks for the reply. Sat, 23 Jun 2012 11:41:00 GMT http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ 2012-06-23T11:41:00Z I would try a local Mortgage ... http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ I would try a local Mortgage banker, one that&nbsp;offers multiple options, local banks usually have stricker guidelines. Have you tried applying for a FHA, VA or USDA loan? As far as your income, did they ask for the last 3 years of tax returns? If your husband has a history of strong income maybe a letter explaining the drop in last years income might help.<br/>Good luck, dont give up but also dont use an online lender..only reputable local lenders.<br/><br/> Sat, 23 Jun 2012 11:28:00 GMT http://www.zillow.com/advice-thread/Getting-qualified-for-a-home-loan-on-self-employment-income/447992/ 2012-06-23T11:28:00Z