Mortgage lenders?

Question

Does anyone know of a mortgage lender who is willing to lend to someone self employeed with other proof of income other that last two years income tax statements? I am a partner in an RV company and have easily made over 100-120k the last two years. I currently have almost no debt, less than $1000 a month. The broker I am working with is having a hard time getting the underwriters to accept my proof of income. My returns are under extension due to hurricane Katrina and Rita. I have offered bank statements to show, and even copies of my schedule K1 which clearly shows my partnership funds paid to me. My company CPA is even willing to send them an affidavit.This has been the only thing keeping me from closing on the property which the seller has accepted by offer on. I also have my VA elegibility letter. This really sucks because the one thing I am most sure of is my income and being truthful about it. I have paid cash for three new cars in the past two years, and have great cash flow.

Answer 1

You missed the boat. Last year you could have gotten a mortgage little or no documentation. One friend of mine borrowed 400k over the phone and was in his new house in 30 days.

Right now everyone is totally gun shy. If I were you I'd start with luxury home builders, most of these builders have connections because many of their buyers have very complicated income histories.

Why can't you use you past 1040's to verify your income? Have you contacted the IRS to see if they will help? Have you talked to your local congressman and explain the situation to him? Officially he might not be able to get directly involved but unofficially he might say something to somebody. These things do happen (especially for an Veteran).

Keep in mind mortgage companies hate dealing with the IRS. If you are lying and the IRS puts a lien on the house, that lien gets paid off first even before the mortgage. Therefore the mortgage company's losses can include the tax lien (loss of available equity to them) if the house goes into foreclosure.

Answer 2

There are loans meant just for self-employed people, and others who would have a hard time verifying income. They're called low doc and no doc loans. The low doc loan is a Stated Income loan. Basically, you tell me you make $X per month and I say OK. Your debt to income ratio has to be acceptable and you'll have to verify assets. The other is the no doc loan, or NINA -- no income/no assets. The lender doesn't want verification of either. In either case, your credit has to be pretty good, at least 720 or so. The loan-to-value ratio must fit guidelines in either case, and the rates will be higher to accommodate the additional risk.