Newbie in NYC: How to get a financing/loan as a freelancer

[Francine Prewitt]

Hello everybody,

My name is Francine Prewitt. I am new to real estate investing. I am currently researching for my first investment property (buying and renting a small multifamily property: 3/4units in New York).

I have a solid work history over the last 3 years as a contract attorney, and though I often work upwards of 60 hours per week, I am technically considered a "freelancer". I've heard this term can scare banks away, especially for first timers. Does anyone have any tips for someone in my situation when it comes time to apply for a loan?

Thank you!

[Mehran K.]

Welcome to BiggerPockets @Francine Prewitt ! I think it's great that you're focusing on the underwriting aspects of borrowing ahead of time. It's very important! 

They'll be requesting the last 2 years full tax returns and probably bank statements to verify your income. As long as you can show a steady income they can calculate over the past 2 years, you should be okay. 

They'll figure out a monthly gross income for you to use in their calculations for determining your Debt-to-Income (DTI) ratio.