Being Self Employed Applying for a Morgage

[Adam T. Veitenheimer]

I am looking for advice on the best way to go about my situation to purchase my first multiplex. I am self employed in an industry that tends to sway each month drastically and is directly effected by the economy.

My business has been open for about 5 years now. On the books I don't show substantial income due to write offs.  All my employees are 1099 contractors and their percentage changes by the time of year. My question is what materials should I bring to a mortgage broker in order to show that my income is much higher then my taxable income in order to sway this in my favor? P & L? Pre Tax? Monthly Books?

The property would be owner occupy most likely FHA in the $250,000 range.

If I am missing any information I apologize, it's been a busy week... Thanks in Advance

[Bill Hamilton]

For an FHA or Fannie/Freddie loan, bringing in P&L's etc may be requested but probably won't "sway" them. They have, as @Jeff Trevarthen said, worksheets that they will use to calculate your income. They can't vary from those guidelines. But if they are doing a portfolio loan they have a little more leeway. Or if you go for what is referred to as a non QM, then they have a great deal more flexibility. But with those, you are not going to be getting a 3.875% loan or anything close as a general rule. Take your info to a mortgage broker and let them run the figures as straight self employed. It might work out fine. If not, you need to find a broker who really knows the alternative programs that are out there.