Investor · Spokane, WA · Member since 2015 · 238 posts · 133 votes
Greetings,
I'm looking for a way around a major refinance snag. I'm in the process of refinancing my duplex; everything is satisfactory to the underwriter (salary, savings,equity, credit score, appraisal, the property cash flows) except my current state of unemployment. I work contract to contract, job to job. I normally go through periods with a few months off at a time, then a job comes up. Though something always comes up I currently am not working and have no promise from an employer of future work. This is the deal breaker in the eyes of the underwriter. My question: has anyone dealt with this scenario or does anyone have creative ideas of what I could present to the underwriter to get around this issue?
Cedar Park, TX · Member since 2015 · 377 posts · 200 votes
11y
You are not going to like my answer.
I started a business 6 years ago.
Conventional lenders want to see two consistent years of W2 income to refinance and current, gainful employment.
We are just finishing refinancing our house. It was a 3 month, very painful process.
Because my company is set up as an S corp, I had the two years of verifiable income, but they realized I am self employed and that convoluted the process.
I find it ironic that my employees have a much easier time getting conventional mortgages than I do. One of the joys of self employment.
Cedar Park, TX · Member since 2015 · 377 posts · 200 votes
11y
You are not going to like my answer.
I started a business 6 years ago.
Conventional lenders want to see two consistent years of W2 income to refinance and current, gainful employment.
We are just finishing refinancing our house. It was a 3 month, very painful process.
Because my company is set up as an S corp, I had the two years of verifiable income, but they realized I am self employed and that convoluted the process.
I find it ironic that my employees have a much easier time getting conventional mortgages than I do. One of the joys of self employment.
Rental Property Investor · Lindon, UT · Member since 2015 · 862 posts · 438 votes
11y
If you are looking for a stated income, conventional loan with rates similar to full income documented conventional loans, this doesn't exist, and may never again exist. There are still lawsuits over "liar loans" that were rampant in 2000-2006. You'll need to prove a 2 year history and a three year projected continuance of any income to have it counted with a conventional lender.
Your next option is asset based lending. Rates start in the 6's and are typically between 10-12% annually.
Real Estate Lender · Martinez, CA · Member since 2015 · 30 posts · 6 votes
11y
Jesse,
As others have stated you will probably need asset based lending-- a Hard Money Lender or private guys. I'm not in your area but if you have any questions I may be able to help. Shouldn't be to hard to find a lender up in the Washington area-- I know a couple. As far as rates go it depends on the value of your house, how much money you want to borrow, and the term of the loan (if it's owner occupied residential you probably might not be able to get a loan for more than a year-- which is probably ok for your purposes). Try and find a lender close to you-- you'll probably get a better deal from a local guy.