What do I do if I want to buy a house, but I can't prove my source of income?

Question

I'm a freelance Web Designer. How do I legally get proof of income? The only savings that I have is the money that's going to go to the deposit, so my bank statements could be useless, or not? I'm 25 years old and a single female.

Answer 1

depending on your credit score you can go into a no assist no income verification loan.....your credit score has to be stong to obtain a lon like this becasue the bank is going on the fact that you make what you state you make...there is very limited documentation needed for this type of loan....you can get 95% financing on this type of loan with a 3% seller assist to help with closing costs..the first step is to contact a mortgage broker and let them look at your credit to see if you even qualify,,,if your credit is not strong enough the next step is to be self employed for at least 2 years...at that time you can go stated with a letter from your cpa saying you are self employed.....if you have any further questions on this you may email at [e-mail]

Answer 2

If you need proof of income you must create your own receipts. Go to a stationery store and buy blank receipts. Each time you have an account receivable, record that on your receipt. Also bank cheques are a good way to record your income. Make sure that you get your cheques back service at your banking institution. Once you establish credit history with a bank and you have a good income without credit problems you could get a mortgage. Also look into no money down or distressed properties sales if your income is not high but you must have good credit. Also finding someone to guarantee a loan or mortgage would be good, but they need to know they are responsible if you default. Good luck!

Answer 3

Assuming your tax returns don't show enough income, you have two options: Stated Income loans, or, subprime lenders have a program whereby they will accept bank statements over a certain period of time.

Tax returns are the bank's most preferred method of documenting income. Nobody tells the IRS they make more money than they do. I am waiting for the IRS to start investigating people who get stated income loans as tax dodgers.

Talk to at least half a dozen brokers in your area.

Answer 4

My wife and I will be in the same boat soon..I own a painting company. What I think lenders and such suggest is depositing any money you make for 4-5 months in an account. I think, then they might estimate what a year worth of pay would be. It's hard with your trade and mine, because sometimes it's hit or miss and there are tons of other factors too....To ease your confusion, you really should just call a mortgage specialist or someone similar and just ask them that exact question and see what they suggest......good luck- hope it's smooth for you

Answer 5

As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.

Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).

Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.

Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.

Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!

Good luck!

http://biz.yahoo.com/brn/060909/19463.html

http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

Answer 6

Did you invoice your customers? Can the customer provide you with a statement of some sort showing their payment records (like a pay stub)?
You should be keeping these as proof of income. If not, your previous year's tax return will suffice. Sometimes they will ask for the previous 3 years of returns for self-employed.

Answer 7

Talk to a mortgage broker. They often deal with such cases and know how to make a case for you. My guess is that your bank record would be highly relevant.

You can search for mortgage brokers online. You should be aware, though, that the interest rate will be slightly higher in cases such as yours because you are, unfortunately, considered a credit risk.

Answer 8

talk to a broker or get into real estate using none of your own money. You can look at various investing techniques such as no down or rent-to-own. It's good way for people who have no money or on a bad credit.

Check this site out to get into the real estate, build up passive income and eventually buy your own house.

http://rent--to-own-property.blogspot.com

And always surround yourself with a reliable lawyer and accountant who specialise in property.

Good luck.

Answer 9

You can get a "no credit check" loan but the interest rate is a little higher and you usually have to put 20% down payment to guarantee the lender you have some equity. There may be restrictions calling in the mortgage if you ever put a home equity loan on it also.

Answer 10

take your bank statement and be up fronr here thats prof of income here, and use itt as that purpose, and it dosent materr if your 25 or nott here, or get your bank to give you a updated status on your savings account records all can be done bye computer hons in minutes of your time money talks bul walks!!