Mortgages and car loans for the adult webmaster - GoFuckYourself.com

inthestars · 10-01-2002, 02:24 PM

I've been perusing the threads about banking and apartments.. since we are self employed adult webmasters, how many other people have had trouble getting car loans and mortgages and how did you overcome the hurdle? Did you have to put more money down or get a co-signer?

playa · 10-01-2002, 02:27 PM

they usually want two years of tax returns and your profit and loss statement too date,, its really not that difficult

DrewKole · 10-01-2002, 02:31 PM

You'll be treated like a self employed person, regardless of the business you're in... unless your tax returns say "Im a fucking pornographer" it doesn't matter.

That being said, you need to show atleast the last 2 years of your tax returns... if you were employed at a day job within the 2 years, that job will need to be verified as well.

The main thing you need to be concerned with is, having the cash for a downpayment ofcourse, and your credit rating...

The higher your credit, the lesser the perceived risk by the bank, and the lower downpayment requirements and interest rate. If you have bad credit, expect to have to put down more and/or have a much higher interest rate.

Also, unless you put down 20% down, you'll have to pay mortgage insurance.

With anything related to financing, be concerned with your credit rating and your debt to income ratio... Being self employed sometimes sucks, you need to go stated income in the event you can't prove you make what you make... You have to have real high credit rating, and money in the bank.

eru · 10-01-2002, 02:33 PM

If you are employed less than two years and have new credit (no credit) you're fucked.

DrewKole · 10-01-2002, 02:35 PM

New credit is better than bad credit. =) Even no credit is better than bad credit in some approval cases.

If ya don't have any Credit Cards or Gas cards right now, get some... Ya don't have to use em, but... they'll be on your record, and when you do, pay em off on time, and eventually you'll get some good credit buildup...

Some of these car dealerships dont care if ya dont have any credit tho... they'll give ya a loan... But, don't be expecting a mercedes dealer to do it.

vending_machine · 10-01-2002, 02:38 PM

Quote:

Originally posted by DrewKole
New credit is better than bad credit. =) Even no credit is better than bad credit in some approval cases.

No credit has in my experience been the worst. If you don't have any credit history, the only time you'll be approved for a normal credit card (or anything that needs credit approval) is while you're in school.

TeraBabes · 10-01-2002, 03:28 PM

Quote:

Originally posted by DrewKole
You'll be treated like a self employed person, regardless of the business you're in... unless your tax returns say "Im a fucking pornographer" it doesn't matter.

That being said, you need to show atleast the last 2 years of your tax returns... if you were employed at a day job within the 2 years, that job will need to be verified as well.

The main thing you need to be concerned with is, having the cash for a downpayment ofcourse, and your credit rating...

The higher your credit, the lesser the perceived risk by the bank, and the lower downpayment requirements and interest rate. If you have bad credit, expect to have to put down more and/or have a much higher interest rate.

Also, unless you put down 20% down, you'll have to pay mortgage insurance.

With anything related to financing, be concerned with your credit rating and your debt to income ratio... Being self employed sometimes sucks, you need to go stated income in the event you can't prove you make what you make... You have to have real high credit rating, and money in the bank.

Wow, if I didn't know better, I'd say you know what you are talking about. Could it be? Could DrewCole (sic) actually NOT be a complete moron?

Just kidding. Actually, everything Drew said is correct, but I have 2 additions to make:

1. You can get around mortgage insurance with creative financing. You can get a primary loan for 80% of the cost of the home, a second loan (shorter term, higher interest rate) for 15%, and then only put down 5%. Yes, you are paying a higher rate on the second loan, but if you figure out how much you are saving on the mortgage insurance, your monthly payment will likely be very close AND you will actually be putting money towards your house. It's a pretty sweet loophole.

2. When they look at your last 2 years of tax returns, they are really only looking at the money earned from your current job. ie, if you had a day job AND did self-employment stuff and then you quit your day job and went full time self-employed recently, all the money you used to make from your day job will be ignored. They will want a current P&L statement too.... Not a big deal if you are making nice bank from your delf employment, but still something to be aware of.

DrewKole · 10-01-2002, 03:47 PM

Quote:

Originally posted by TeraBabes

Wow, if I didn't know better, I'd say you know what you are talking about. Could it be? Could DrewCole (sic) actually NOT be a complete moron?

Just kidding. Actually, everything Drew said is correct, but I have 2 additions to make:

1. You can get around mortgage insurance with creative financing. You can get a primary loan for 80% of the cost of the home, a second loan (shorter term, higher interest rate) for 15%, and then only put down 5%. Yes, you are paying a higher rate on the second loan, but if you figure out how much you are saving on the mortgage insurance, your monthly payment will likely be very close AND you will actually be putting money towards your house. It's a pretty sweet loophole.

2. When they look at your last 2 years of tax returns, they are really only looking at the money earned from your current job. ie, if you had a day job AND did self-employment stuff and then you quit your day job and went full time self-employed recently, all the money you used to make from your day job will be ignored. They will want a current P&L statement too.... Not a big deal if you are making nice bank from your delf employment, but still something to be aware of.

DrewKole is a mortgage banker during the day. =)

And yes, You can get a 2nd lien for 10-15% and avoid mortgage insurance, at the price of having a higher rate on the 2nd, and it matures generally in 10 to 15 years as opposed to 30 years like the first note (if you went that way).

We don't care what you do, as long as its legal and reported, we just have no way of knowing 1) What you make per month... having made $3k this month, and $1k the last 5, doesn't look good, we use W-2's or employment verifications (cant with self employed) to average the income over the past 2 years...

BTW, Incase anyone is thinking about it, don't forge any tax returns... =)

L0stMind · 10-01-2002, 04:17 PM

I am curious how many webmasters fully report their earnings?

TeraBabes · 10-01-2002, 04:19 PM

Quote:

Originally posted by L0stMind
I am curious how many webmasters fully report their earnings?

100% of the honest ones.

Start a poll.

10-01-2002, 02:24 PM	#1
inthestars Registered User Join Date: Sep 2002 Location: California Posts: 2,021	Mortgages and car loans for the adult webmaster I've been perusing the threads about banking and apartments.. since we are self employed adult webmasters, how many other people have had trouble getting car loans and mortgages and how did you overcome the hurdle? Did you have to put more money down or get a co-signer?

10-01-2002, 02:33 PM	#4
eru Confirmed User Join Date: Mar 2002 Location: Hawai'i Posts: 2,612	If you are employed less than two years and have new credit (no credit) you're fucked. __________________ <font color="#FFFFFF" size="2" face="Verdana">This thread will self-destruct in 5 seconds.</font><font color="#FFFFFF" face="Verdana"><br> <br> <font size="1">In the meantime, consider hosting with <a href="http://www.choopa.com"><font color="#00FF00">Choopa</font></a> -- The only provider with 9 x 1000mbps Transit Redundancy</font></font>

10-01-2002, 02:27 PM	#2
playa Confirmed User Join Date: Feb 2001 Location: atlanta, GA Posts: 6,432	they usually want two years of tax returns and your profit and loss statement too date,, its really not that difficult

10-01-2002, 02:31 PM	#3
DrewKole Confirmed User Join Date: Aug 2001 Posts: 5,193	You'll be treated like a self employed person, regardless of the business you're in... unless your tax returns say "Im a fucking pornographer" it doesn't matter. That being said, you need to show atleast the last 2 years of your tax returns... if you were employed at a day job within the 2 years, that job will need to be verified as well. The main thing you need to be concerned with is, having the cash for a downpayment ofcourse, and your credit rating... The higher your credit, the lesser the perceived risk by the bank, and the lower downpayment requirements and interest rate. If you have bad credit, expect to have to put down more and/or have a much higher interest rate. Also, unless you put down 20% down, you'll have to pay mortgage insurance. With anything related to financing, be concerned with your credit rating and your debt to income ratio... Being self employed sometimes sucks, you need to go stated income in the event you can't prove you make what you make... You have to have real high credit rating, and money in the bank.

10-01-2002, 02:35 PM	#5
DrewKole Confirmed User Join Date: Aug 2001 Posts: 5,193	New credit is better than bad credit. =) Even no credit is better than bad credit in some approval cases. If ya don't have any Credit Cards or Gas cards right now, get some... Ya don't have to use em, but... they'll be on your record, and when you do, pay em off on time, and eventually you'll get some good credit buildup... Some of these car dealerships dont care if ya dont have any credit tho... they'll give ya a loan... But, don't be expecting a mercedes dealer to do it.

10-01-2002, 04:17 PM	#9
L0stMind Confirmed User Join Date: Sep 2002 Location: Vancity Posts: 1,681	I am curious how many webmasters fully report their earnings?