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Updated almost 9 years ago,
Conventional mortgage with only 1 year 1099/W2
Hello all, I am looking to buy my first rental property locally here in Las Vegas. I am a full time real estate agent doing a good amount of business so I am very familiar with the market. I have good credit (around 770 right now) and have enough cash to put 20% down on the properties in my price range ($150k-200k).
However, the problem is that I only have 1 year's tax return as a 1099 employee. I started real estate on 1/1/2015. So, I just got 2015's tax return, but I won't get next years until around March of 2017.
Prior to starting in real estate, I had well-paying W2 job for over 3 years with no gaps (I have W2's for 2012, 2013, and 2014). I went directly from that job into real estate with no gaps either.
From my understanding, conventional loans require 2 MATCHING W2's or 1099's. So I think I am out of luck. I would really prefer to use a conventional loan and not hard money/crowdfunding so that I can get a better rate. If I had a second year 1099 I could get 4.5-5%, with hard money I understand I would be paying 8-10% which is out of the question for me.
Do I just have to wait another year, or is there another option that anyone here can think of? I'm coming across some great opportunities which I would love to take advantage of. Prices are going up here as well so I would prefer to take action now if possible. Thanks so much for any advice!!