I am a self employed prospective home buyer. I will be graduating in may with a BA In landscape Architecture. This is what I have run into.. I have just filed my first year of tax returns. So basically the business is under a year old. My credit score is around 730-740. The problem mortgage companies have been telling me I have is lack of employment. Althought I know money is not a problem, I can not just promise them. Also I have $60,000 in available credit with $2,000 used. Where should I go to get the best rates? One company told me about a variable program with a 8.5% rate. This seemed high to me. What Can I do to get a mortgage?
2007-03-26 09:43:48 · 8 answers · asked by Jeff B 1 in Business & Finance ➔ Renting & Real Estate
Check out your local bank. Som people don't follow comunity policies and would like to spam here, but you bank will be much more reputable.
2007-03-27 16:00:59 · answer #1 · answered by Mark P. 5 · 0⤊ 1⤋
As a first time home buyer, your good credit score should qualify you for several options, and most likely a better rate than 8.5%. 30-year fixed rates are below 6% right now, so that seems a bit high, even for a stated loan.
Keep in mind that the regulations have changed recently for stated loans and they are basically harder for banks and mortgage companies to write than they were just a few months ago.
As long as you have some money as a down payment, you can still qualify for many mortgages. Being self-employed and the fact that most likely you'll see your income grow substantially in the future, you may want to consider a loan with several payment options. Many mortgage companies offer loans where you have up to four payments and you pick the one that best suits you on any given month. This is great for people that have fluctuating income, but can make the full payment every few months. It's a great option to have if you are an effective money manager.
I strongly recommend getting referrals from people you know and trust for a good mortgage professional. Talk to other business owners in similar situations and learn what they did, both right and wrong. If you do your research and find a trusted mortgage professional, you should be able to find a deal that will be great for you.
Good luck with your first home.
2007-03-26 20:56:42 · answer #2 · answered by Quicken Loans 5 · 0⤊ 0⤋
You should check out a mortgage broker, he has many underwriters that could underwrite your loan application.
There are many stated income programs where you can use your bank statements as proof of income.
You will have to pay a higher rate of interest for a few reasons.
#1 You are self-employed
#2 You really have no proof of income
#3 You have been self-employed for less than a year.
Now that being said and the way the mortgage industry is or will be tightening up the way they underwrite loans, you might have a good interest rate.
Once you have the house you can always refinance after one year for rate and terms just to lower your interest rate.
You might also consider and interest only loan for 3-5 years since you really will not be paying principal any way. This will get your rate down some.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-26 17:05:20 · answer #3 · answered by Skip 6 · 0⤊ 0⤋
Contact me A.S.A.P.
We can put you on a stated income program that will essentially show that you've got income but that's all the bank needs to know.
Also, if you've been in the same line of work for 2 years or more the banks look highly at that.
I work with a federally chartered mortgage bank (not a brokerage) and we do business in all 50 states. The help you need is right here. E-mail me and I will give you my contact details. Then we can chat in more detail about your situation.
2007-03-26 17:17:18 · answer #4 · answered by Evolver_dad 2 · 0⤊ 0⤋
A good place to start is to see what first time home buyer program your state offers. You could qualify for downpayment or closing cost assistance as well as a really competitive interest rate.
Check out the link below for more info. Good luck!
2007-03-26 19:41:21 · answer #5 · answered by S C 3 · 0⤊ 0⤋
Why not try to get an FHA loan? They have first time homebuyer programs and also a fixed interest rate currently of 6.00%. If you go to www.fha.gov they can help you locate a bank that would be able to assist you with the process. Also, if you do not have a down payment they offer down payment assistance. it's more cost effective to go directly to the bank than deal with a broker because of brokerage fees.
Hope this helps!
2007-03-26 18:40:55 · answer #6 · answered by quiescent_soul 2 · 0⤊ 0⤋
Well here's the thing.....have you been in the same line of work for 2 years?? That may fly if you have! You definitely have the FICO to go stated income but your rate is higher than if we proved your income. Take care and email me with anymore questions. =0)
2007-03-26 16:52:29 · answer #7 · answered by peapod_mommy 2 · 0⤊ 0⤋
with that credit you should get a fixed rate around 7.375%. You can do what is call a no doc loan.
2007-03-26 17:46:11 · answer #8 · answered by s_uperdave 3 · 0⤊ 0⤋