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Updated over 5 years ago,
Saved down payment - loan not approved
Hi everyone,
I have spent the last 6 months saving about 60% of my income so I could finally move forward with my first multifamily property. I saved 30k and plan on using FHA loan to house hack one of the 4 units (looking at a 4plex). I recently went to a mortgage lender and asked for a pre-approval. After sending personal and company tax returns he said because I am self employed for 2 years and my tech company "reported" a loss on our federal tax return for 2017 and 2018 my personal income wasn't high enough to be approved for the property I want (listing price 320k). Keep in mind I am buying real estate that will cash flow and will hopefully increase my income in years to come. Only went to this one lender called CapHouse Financial for the pre-approval who was highly recommended from Sotheby's.
In my mind I have a few options. Pick 3-4 lenders and apply for a mortgage approval all at once and see if I get approved. If I don't get approved maybe have someone who does meet the requirements sign with me? What are the negatives to having a relative or business partner sign (just for mortgage approval and not financial reasons)?
I'm not giving up!