Self-Employed & Securing Mortgages

[Chanté Owens]

Hello BP Community!

I've been reading a lot here, and I know there are some people who are self-employed here; however, I am curious about how funding has worked for those who are self-employed with one or more of the the following "barriers":

• Highly fluctuating yearly income
• Limited amount for down (say the 3-10% range)
• Being in your self-employed field for less than 2 years
• Fair credit/Credit Issues/Bankruptcies

These are just general questions.I know quite a few self-employed people who make anywhere from 15k to 1m a year, but they all discuss how frustrating it is to (try) to get "traditional" financing when self-employed and applying for mortgages; regardless of credit. The ones with more money have pooled together with one or two others and been able to purchase properties, but those who don't know others with money or willing to risk it on them are finding it difficult to find funding since they are self-employed.

Oddly enough, some of the people I know with a lot of money have the worse credit, and the ones who barely make 15k a year have great credit (not all, but a strange skew of people).

I'm just curious, as I am self-employed, and I know I'm going to have to think creatively when I am ready to purchase my multifamily in a couple of years.

I'm looking forward to the responses!

[Chris Adams]

I don't even attempt to get conventional freddie/fannie mortgages, because my income would never qualify. Not that I don't make money, I do, but why pay taxes on anything more than the tax code says you should. I will never give up a dime of my deductions.

Yet I maintain a near 800 credit score, and I can get financing all day long from banks that do portfolio loans (in house commercial mtg's).

I pay a bit more in interest and I can't take advantage of 30 yr fixed rates. But I refuse more banks offers than you can imagine. Also if you do any volume of buy & hold your going to max the freddie/fannie limit anyhow and be in the same market I am.