Non QM Loan for Newly Self Employed

[Stella Guan]

Hi, I'm newly self-employed (~6 months) after resigning my W2 job and starting a business. Been trying to purchase a single family home in California as primary residence. Due to Covid, most non-QM programs have dried up. I've spoken to quite a few brokers and none of them have good answers because my history of self employment is too short (they require at least 12-24 months of bank statements). Apparently none of the compensating factors like high credit score, putting 25-30% down, strong bank statement counts now. I know most people here are looking for loans for investing and not primary residence. Anyone has advice on this? Is waiting until next year my only option? Not sure if getting a private lender is an option or worth it. Thank you! 

[Dylan Vargas]

@Stella Guan Welcome! Have you looked at a fixer? You can get a hard money loan that way but make sure you know how to fix. Then refinance out of it when your schedule C taxes are done in the next year and a half or so. Another is private money. You may find someone that will accept your downpayment and do interest only. Will not be that much higher of a payment and again refi once self employment taxes are filed. Waiting isn't a bad option either as this will allow you to study the market and pounce when ready. What part of California? Good luck and keep us posted.