Trouble getting a loan.

[Jason Boritz]

Hi everyone,

I was wondering if anybody has any advice on the following -

I have been trying to get an FHA loan to buy a house here in Los angeles. The 3% down payment is not the issue, I have had a hard time qualifying for a loan because I am

Self employed. I haven’t been able to get a co-signer as well.

I would live in this house and rent out the other rooms to cover the mortgage.

Any suggestions on how to qualify for a loan would be appreciated.

[Julee Felsman]

Hi Jason!

Your question can only be answered by getting a look at your tax returns. It could be that your reported income and expenses simply don't support enough loan to buy the property... or it could be that the lender(s) you've talked with aren't well versed in self-employed income analysis.

The silver lining if it turns out that you are a little short on the required income:  it's late October.  This time of the year, I talk to a lot of my hopeful homebuyer clients who are self-employed about positioning themselves to buy next year, once this year's taxes are file.  (Although that might not work timing-wise for the home  you've found.)

Another resource I can offer (even if you don't want to take me up on looking over your financials) is this blog post: 

http://workshopmortgage.com/blog/blog/2019/01/10/mortgage-mastery-for-the-self-employed/

it outlines, in detail, how lenders view self-employed income and analyze tax returns.

I'm happy to answer any other questions you have too!

good luck!

Julee