I am self employed, I want a new house, what is my best bet on getting a mortgage?

I am self employed, I want a new house, what is my best bet on getting a mortgage?...I don't want to get screwedI am self employed, I want a new house, what is my best bet on getting a mortgage?
if your business is new (less than 2 years) you will have a hard time but if you have been in business for more than 2 years you will need your tax returns to show a steady income and you will need good to great credit. if you have those things you should be able to get a loan with any of the big banks chase, wells fargo, BoA.





but if you want the best interest rates you should also have at least a 20% downpayment and you really will not have any problems if you have your 20%, good credit and two years of taxes for your business.





one thing you dont want to do, is if in the past you put down too little income to avoid paying the IRS their share. if you did that you will either a) have to settle for less nice than you want or b) not be able to get a loan at all. so as long as you were honest about you earnings in past years you should not have a problem.





you can check daily interest rates on http://www.nytimes.com/pages/realestate/鈥?/a>





todays rate for a 30 year mortgage is 4.99% (the rate can change daily so your finally rate depends on what the rate is on the day you ';lock it in'; with your lender)





but each case is different depending on your bank. for example: we have less than perfect credit (not bad but not great either), we put down 3.5% down payment, went with chase, have steady jobs, and because the seller was so keen to sell the home he paid for points so we got a 5.5% 30 year.





we didnt qualify for the best rate because we didnt have a 20% downpayment but the seller paid ';points'; to lower the rate plus rates were low on the day we locked in our rate so we got a very respectable 5.5% 30 year fixed rate.I am self employed, I want a new house, what is my best bet on getting a mortgage?
it is the same for you as every one out there. It is based on credit and income and the home passing. Why is self employment the issue and getting screwed. The plain hard facts are that many self employed people will never qualify to buy much home since stated income is a thing of the past. See most S/E people write their income down to little to avoid paying taxes. So be it. But we as professionals know the lender will average the last 2 years tax returns with accompanying 4506T as verification of income and add back in some items from the returns like depreciation and clients some of them cannot finance a 6 pack of beer when all is said and done. If you are one of these then write nothing off the next 2 years and pay the tax owed so you have a chance at a decent home. Sorry but this is the screwing you get for the one the IRS got. Sad but true. You can have a 835 credit score and still not qualify to buy. I see it almost daily.


I am a mortgage banker in TN
I was once in this same position. What I ended up having to do is save, save and save until I came up with 1/3rd to use as a cash down payment.


Then everyone wanted to loan me the rest as they would be able to lien the value of the entire property. It hurt for a while but now, 12 years down the road, we were finally able to refi and get on top of things.


Hope this helps.


Good Luck!
You should go an see an independent financial adviser to advice. If you are self employed, it is likely that you will have to produce three years certified accounts as proof of your income.
Call Dave.











Guy wrote a book once..... ';How come every time I get stabbed in the back, the fingerprints on the knife are my own?';
discuss this with your mortgage lender %26amp; real estate agent.
depends on how much you are making.