How to secure a loan as self-employed / through LLC

[Shawn Blake]

Hey!

So i've been on BP forum for some time now trying to figure out how to get in the game. A lot has changed and recently i left my corporate job where i was making over 6 figures to open my own production company thats been in operation less than a year. God willing in my first year of operation i'll touch 6 figures, but i have faith i'll at least come close to that. 

My initial goal was to buy a house using my employment income but now that that has changed i am looking for tips and strategies to purchase a house through my LLC or by paying myself a wage (which wont be that close to what i was making before). My new goal is to buy a townhouse in Atlanta or Houston that's under $200k. i'd be able to house hack or Airbnb.

Some questions:

1. What is the best strategy for getting a loan as a business or self-employed person?

2. Am i able to take advantage of first time home buyer programs this way?

3. What are you seeing in the market as far as getting a loan this way?

4. Atlanta or Houston?

Thanks!

[Stephanie P.]

Hey @Shawn Blake

Best of luck in your production business.  I think you'll find the tax structure of being self employed (along with the obvious freedom, stress, exhilaration and all the other adjectives that come with a massive change in life) favorable to your former W2 life.  Regarding your questions:

1. What is the best strategy for getting a loan as a business or self-employed person? DSCR loans don't require tax returns or income verification. Just 20% down for a purchase, decent credit and a property that doesn't need renovation. Current rates are in the 4's on a 30 year fixed, so not heinous and since you don't qualify for conventional financing, this is your next best bet. Reno loans are available without income verification as well.

2. Am i able to take advantage of first time home buyer programs this way?  No.  You'd have to verify your income and have it for 2 years.  Changing your job eliminated that unfortunately.

3. What are you seeing in the market as far as getting a loan this way? DSCR lenders are busier than they've ever been because the rates and programs still allow for great cash flow, the loans close with minimal effort and there is more uniformity in this sector of the mortgage business.

4. Atlanta or Houston?  Either one is a good choice although my personal choice would be anywhere in Texas; not limited to just Houston.  Tyler is a great market.