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Due to an unexpected divorce, I was forced into bankruptcy in 1994. In that year, I got a secured credit card, and today I have a $12,000 credit limit on my card. The balance never rose above $5,000, and during the past year, and continuing today, I have been paying down the loan, sometimes with payments as high as $800 a month. Last year I also began to repair my credit by buying a new car, and new wedding rings, both on credit, and I have made all of the payments on time. But I am told that my credit accounts are too new, even the credit card. I am SELF EMPLOYED, and it's my understanding that mobile home loans are out of the question for me because of high foreclosures for self employed people. I'm wondering why my tax statements and my bank records are not proof of my income? I have been striving so hard to rebuild my credit, but it doesn't seem to matter to lenders. Is there any hope for me? Will I be relegated to having only an owner carry contract? Thank you for your help.

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

There are bound to be lenders that specialise in self employed loans, but you may need to do some looking around to find them.

The problem with self employed income is that it isn't guaranteed like a normal salary is. I know you can't be guaranteed to keep your job forever, but you are guaranteed that as long as you are working you're going to be getting paid. self employed income can fluctuate heavily.

what is you current credit score? what lenders will be looking for most is consistency. They need to know that you will be able to pay your repayments not just now, but for years in int the future as well.

So, depending on your credit score - I think you should be able to finad a lender to work with you, provided that the additional burden of a new loan will not overstrech your payment capacity. Lenders will always be more cautious with fluctuating incomes - it's the same for people who are in heavily commision based jobs.

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Oh I did forget to mention that my credit score is 705 as of two days ago. I sure DO understand how self employed persons' income can fluctuate, and how so many new businesses flounder within a year. I've had a successful business since 1988, and I'm proud to say that even in this terrible new economy that my business is still prospering. But my income is only around $30,000 a year-- which isn't much to lenders probably but is sustainable for me. Yes, my revolving accounts are high and are fairly new. I'll bet any lender willing to risk me would have a very high interest rate. I am now believing now that I must just be patient and keep paying my accounts down as I have been doing, until I have finally proven myself. I'd really hate to have to pay exhorbitant interest if I found a lender right now. Thank you so much for your awesome advice! Just what I needed to hear.

gmakerley · Posted: Wed Dec 02, 2009 2:50 pm Post subject:

you've done good work in re-establishing credit, quilt lady. now if only your income could be higher, it would be a wonderful day all around. as you noted, paying down of the debt is paramount.

unfortunately, the good effect of taking on new debt and paying it on a timely basis is causing your debt ratios to be excessive. no doubt the sooner you can eliminate your debt, the easier it will all become.

i don't know about any direct correlation between self employment and the making of loans for the purchase of mobile homes. i do know that mobile home financing is not easy to obtain for anyone.

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