FHA loan without a W-2?

[Leo Kwok]

Hello all!

So I have a somewhat unique situation hoping someone can give me some advice... so I am ready to start looking into a house-hack type deal, and I will be looking for a 3 or 4-flat in Chicago to do this with, and obviously I want to do a FHA so I can take advantage of the 3.5% down, problem is I just found out that I have to have a W-2 or paystub to qualify for that.... I quit my day job at the end of last year and I have no intentions of looking for another one, as my current flip projects is making more than sufficient income for me... I only started my flips this year so I do not have the necessary 2 years of self-employment history needed.... so my question is there any go-around to this or is there some other alternatives I can look at so that I don't have to do 20% down?

thanks in advance for your responses!!

[Brie Schmidt]

@Leo Kwok - you will need a W-2 or 2 years of income on taxes returns for any conventional or FHA loan, even with 20%

Let's say you reported $20k income in 2017 because you just started near the end of the year.  

Say you make $150k in 2018 - the soonest you can get a loan is mid 2019 after you file 2018 taxes, and they average the last 2 years - so you will show $85k a year income.  It won't be until mid 2020 after you file your 2019 taxes that they will be able to use the full 2 year income as the average