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Need mortgage for SF property, fico score 654 and 100% ltv. Would like to purchase a home but I am self employed. Are there special programs for self employed persons?

Guest

in case you need this information, i am in arizona

kenstampe · Posted: Thu May 10, 2007 9:57 am Post subject:

The challenge you may face being self-employed is being able to verify enough income to qualify for the new mortgage payment. There are loan programs which allow self-employed borrowers to simply state their self-employed income without having to verify it with tax returns, but for 100% financing these programs now require FICO scores of 680 which you appear to be under.

I guess the first thing for you to determine is how much income can you verify and is that enough to qualify you for a loan.

1) calculate your income by taking your 2006 tax return, take the adjusted gross income and add back any depreciation, deduction of home used for business purposes, or mileage that was expensed and deducted from your AGI. That gives you a total income for 2006, take 2005 and do the same thing. Add up the two totals, divide by 24 and that's how 90% of lenders will come to determine your self-employed income amount.

2) Add up your monthly bills on your credit report such as credit cards, loans and car loans. Using the income you calculated in step one, divide it by half, subtract the monthly bills you added up in step 2 and what is left over is how much you have for your new home mortgage payment including taxes and insurance.

Report those figures back here and let the experts assist you in determining how that looks for your options.

mikeshapiro · Posted: Thu May 10, 2007 2:10 pm Post subject:

Hi Ken,

I too am self employeed and have heard they are going to do away with stated income/asset programs in the near future. Have you heard anything about this? I've always gone stated because its so much easier and faster, but if they take these programs away I might need to adjust how my finances work in order to make sure I can qualify on my next loan.

Thank you.

blue · Posted: Thu May 10, 2007 6:33 pm Post subject:

Guest

Thanks Ken for that calculation stuff. But does that matter if I work for only 6 months a year and make about 15K a month and I would have no problems paying at least 10% down payment and I would prefer a fixed rate, as low as possible.

helping_user · Posted: Fri May 11, 2007 3:02 am Post subject:

Hi Blue,

If i am not wrong then i think you are talking about SIVA and SISA Loan.

blue · Posted: Fri May 11, 2007 1:56 pm Post subject:

Yes helping_user I was referring melvin to go through that page as it discusses these loan options for self employed people.

Thanks
Blue

Guest

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