I have a 670 credit score, I am self employed, I want to buy a house that costs 419K...?

Question

is there a loan available that I can get into that is 30 year fixed and doesn't require a down payment?

Answer 1

hmm with a 419K loan? Honestly I don't think so but talk to a good loan officer. You never know.

Answer 2

Yes, there are plenty of loan programs available. But if you can put down just $2000, you will fall within the conforming loan limit, which is $417,000, and find it much easier to get a loan. And an eighth-point cheaper on the interest rate.

To the self employed part: just because you are self employed does not change anything about your loan qualification. What it does change is how your loan is documented. A self employed borrower generally has to provide two years of tax returns, both personal and business. The lender will analyze the cash flow showing on the tax returns and use that to qualify you for the mortgage. Most lenders will use Fannie Mae Form 1084 to anlayze the income.

Using the 1084 method, the lender will start with your taxable income, and then add back in the paper write-offs, such as depreciation, depletion, amortization, casualty loss, business use of home, and any one-time losses. The lender will also subtract any income not expected to continue and any non-deductable business expenses - primarily the half of meal and entertainment expenses excluded from previous deduction.

The answer will be used to qualify you for the loan just as anyone else's income would be used. Note that you need to have been self-employed for at least one, and usually two, years. And if you are relying on income that you do not declare on your taxes, then you would need to go stated income. In that case, your credit score might be ten points too low.

Analyzing tax returns for self employed borrowers is a skill that not all mortgage originators have. Many will try to get you to go stated, telling you that it is easier. Yeah, right. Easier for them. If anyone tells you that qualifying a self-employed borrower is hard, tell them goodbye and find someone who knows how to qualify you.

Also, explore all options. A couple years ago, everyone was doing 80/20 mortgages. But things have changed. The interest rates have gotten so high on the 20 that most people find a 100% loan is the better way to go now. Plus with mortgage insurance being tax deductible now, that may be the best route for you. Have your loan originator run the loan as an 80/20, a 75/25, and as a 100% loan with MI.

Good luck.

Answer 3

The Good News is, For Self Employed Borrowers and for Non-Self Employed borrowers there are Loan Programs that will assist with reduced documentation to help them achieve a home for purchase and or for a refinance.
Additionally, if they have had a prior Foreclosure or Short sale, they may be able to avoid the 2-7 year waiting period.
Feel free to contact me so we can discuss your unique situation and goals to see what is the right path for your home.

Michael Evans
Loan Officer
NMLS: 251165
[e-mail]
510-455-4109

Answer 4

It is doable, but I would not necessarily recommend it.

When you are saying you are self-employed, I am assuming you don't have a reportable income to qualify. Either way, if you want 100% financing with your credit score it is going to cost you by having a higher interest rate.

I would look at an 80/20. Even better, if you can find a motivated seller, you may be able to get a real good deal on them possibly holding a second mortgage. This can and will dramatically reduce your payment.

You will also, in general, save money if you keep your total loan amount under 417k (in every state except Hawaii and Alaska, Guam and US Virgin Islands - also that is for a single unit, higher limits if you are buying a 2, 3 or 4 unit).

Hope that helps.

Joe...

Answer 5

Yes, there are plenty of them, but being self employed, you'll just need to find a lender that has self employed loan programs. There are a lot of them that do this. As long as you qualify, you shouldn't have any problem.

Answer 6

With that volume of down charge, the seller will be prepared to carry a couple of minutes period settlement for deed. acquiring a private loan for a refinance is way less stressful than for a purchase order. With one 12 months of seasoning on the settlement for deed, you should take care of to refinance and pull your down charge money lower back out of the resources, plus more suitable if so wanted if if truth be told the resources is truly worth 65K as you're saying.

Answer 7

If you can afford the $4500 monthly paymnts why not wait a year and put up a 10% down payment?

Answer 8

My husband is a loan officer at Home Funds Direct. He can probably get you a loan like that, you would just have to call and talk to him. If you would like his contact information just email and I will give it to you.