Need financing help for my new deal!

[Zach Adams]

I'll be concise.  Looking to buy a MFH in the $450k-$500k range in north San Diego.  It will be owner-occupied.  I have been W-2'd for 13 years, but the last 2 couple of months started consulting and am now a 1099 contractor.  FICA 800ish.  All real estate properties/taxes look good and no past issues.

I was told by a mortgage broker that since I'm not W-2'd anymore and don't 3 years of schedule C from 1099 that I won't  qualify for conventional fannie program.  I sought private money and sourced a non-QM at 5.75% up to $500,000 with 20% down.  I looked into selling a property to get the downpayment and for reasons I won't go into, that may not work.  

Now I'm thinking two things:

1- Is anyone doing HELOCs on investment properties right now? I looked a lot last year with no success. I have a property valued at $210,000 with a $105,000 note. A 75% LTV HELOC could give me $50,000 for a downpayment. Could bring another $20,000 to the table for a total of $70,000 downpayment, but would need have a loan in the 15-20% downpayment range to meet my market. Again this is Owner Occupied.

2 - Is my broker correct about my loan limitations given that I'm 1099?  

Any help or suggestions are always appreciated from you guys!

Zach

[Matt K.]

I have a OOS lender that has source for investment HELOC and is investor friendly so might be able to help out with the 1099 issue. I've thought I have seen that you can get around the 1099 by using job history if same career field... but I have no source for that.

Message me if you want his info...