How long does one need to be employed for at a company before obtaining a loan from a bank to buy a house? I'm 23 and for the past 3 years I have been working online, but I am technically not an employee, but I do have the tax forms from past years to prove I made a sufficient income. I am going to get a "real job" once school is over.
2007-07-04 17:31:11 · 6 answers · asked by John L 2 in Business & Finance ➔ Renting & Real Estate
As long as you can document 3 years of the same job and the income produced is enough to qualify you for a mortgage loan you will be fine. You will technically be considered self-employed it sounds like and a 2 year history of self-employment is normally required when you are buying a home. There are also other types of programs for individuals who can not document their income or employment information that may be able to help you.
2007-07-04 17:37:57 · answer #1 · answered by dzwreck 4 · 0⤊ 0⤋
If you were an independent, then you should have received 1099 tax forms from the company. Three years should be sufficient. I am in a similar situation and only had to supply two years of 1040 tax forms. I don't even have a job. I trade stocks for a living. Still, two years was enough.
There is also the option of a "no-doc" loan where you can't document a steady source of income. The rate is a little higher because essentially the lender is willing to accept foreclosure on the house as his only guarantee. Do one of these and then refinance when you get a regular job.
2007-07-05 01:00:07 · answer #2 · answered by Ted 7 · 0⤊ 0⤋
If you have good credit and a down payment, this is really not an issue. You can do a no income/no asset loan. The rates are a little higher, but that is because you don't have to prove income or assets. You just need to show up at the closing with the down payment. This usually will add anywhere from .5-1% to the rate, depending on the lender. Check with your local mortgage professional about the program or check us out online.
2007-07-06 11:20:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Normally, if you are self employed the banks want to see tax returns for 3 years documenting your income.
It is a problem for many, because many independants do everything they can to under report on their taxes. You save tax billings, but then find you can't get the mortgage you want.
2007-07-05 00:44:04 · answer #4 · answered by rlloydevans 4 · 0⤊ 0⤋
working as an independent contractor is difficult to prove, especially online. You must work for an employer and have several years with them, having paid your rental bills, your electric, phone, etc. and car payments and the credit bureau will reflect this. Plus you have to have a deposit down on the home. Depends $10,000 to $20,000 plus be able to pay closing costs and be prepared to pay PITI monthly on that house. Figure it this way. If you earned $50,000 a year then you would be able to pay for a $50,000 home comfortably, however homes are now $200,000. So, doesn't it seem to you that you'd need two large incomes in your home to be able to buy a home comfortably?
2007-07-05 00:37:16 · answer #5 · answered by sophieb 7 · 0⤊ 1⤋
Mortgage lenders will want at least two years of employment in the same line of work. Sounds to me like you'd have to qualify as "self-employed" so they would average your last two years AGI from your tax returns.
Good luck!
2007-07-05 01:17:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋