Questions: Mortgages & Self Employed

current crisis fucked up banks big time.
all these bankers just wanna cover their asses and trust nobody anymore.

that really sucks, because it prevents people like me who can actually afford to buy a house, dont have an option unless I have 30% to put down

Mortgage and loan companies aren't very nice to small business owners. Unless you can put a large percentage down or prove solid income for at least 2 years, you will likely be out of luck. You will likely have to buy something well under what you can afford.

what you put on your tax return is most important. Because if that isn't true then you are lying to the IRS and why would anyone want to give a loan to someone that lies about thier income? If what is on your tax return is true and it shows low income then of course they aren't going to give you a loan. Doesn't matter what you pay in RENT, a lease is at most 1 year. A mortgage is 15-30 years. By the way 20% down has been the standard for any motgage. In these times I'm not surprised if that has gone up. The more you put down the less the bank is risking. You could take less deductions when you file you taxes thus making your income look larger. Of course that means paying more taxes, but do you want a house or not?

You should probably put your self on payroll either way... talk to your accountant, see what they can drum up.

They really want 30% now a days? It used to be 20% and you get qualified for any loan...

Can still get loans here from our local banks for 20% down. Problem is most people can't come up with that 20% for a loan still.

Unfortunately I doubt you will ever be able to get a loan now, unless you put a huge down payment like you said.

Perhaps a no income no assets loan "aka - drug dealer loan" would work,

but the problem with ANY choices in your area is that it's in the "sub-prime" mortgage area and that is the area that has taken the biggest hit and they have tightened up immensely.

get the seller to carry that 20% 2nd mtg and move in with no money down. It still works just like it always has.. you just need a motivated seller.


p.s. I wrote mortgages for a few years in my 20's

make a fake 1040EZ, photocopy it and show it to them.

I assume you have at least the 20% to put down otherwise ther was no point trying to get that loan. Now if that amount is the MAX you can put down then the only way you can get a house by putting 30% down is to buy a house that is worth 2/3 the amount of the house you currently want. Sure it's not going to be what you want, but if you want a house bad enough that's what you'll have to settle for.

I had some problems with this myself, I had to provide a ton of documentation proving my income, far more than I would have had to were I employed by a company. Just give them the past tax records they need, cause stated income.. that's long gone these days.

Use an ABC (like in google). Get a friendly bizz to give you a payroll slip & contract and have it actually paid for 3 or 6 months in a row to your bank account because nowadays the bank will aks you for your bank statements to see if you actually received that money (pay your friend, that you MUST trust 100%, back in advance monthy since +1-1=0). Voila !
3rd party hires you for an indefinate time period. Loan secured. Better not fuck up this little advise because banks won't like that. This way it's up to you and YOU ALONE.

Banks suck. Many many years ago when I was young I could not get a fucking dime and now different banks call me every week and kiss ass to loan me money that I DON'T need and still the fuckers keep calling and competing on what's not there to get.
Banks need 1 thing!; cover their ass legally with paperwork. It's all about people and people are afraid to loose their jobs so they ask what their boss wants them to so they can say; hey, I did what you asked so it's not my fault.
If sound paperwork is what they want, give them sound paperwork.
better bookmark this absolute truth quote about bankers

until they check with the IRS