Self Employed FHA Qualifications Starting Out FHA Tips

[Jorge Mendoza]

Hello Everyone! 

I am looking for any advice that can help me qualify for an FHA self employed loan as I have read it is more difficult to be approved for an FHA loan when you are self employed

I am excited to start investing in real estate and have been researching the best way to start. I am 20 years old currently live in South Texas and Self-Employed. My credit score is around 670 and have run my own business for 2 1/2 years. My first Months I made only a few thousands dollars. Last year I increased that to $28,000 post tax income and estimate around $35,000 for this year. My goal is to invest in a multifamily property priced around $180,000. I am looking for any advice from people that have gone through the FHA self employed application process!

Any and all help is appreciated!

[Jim Cummings]

@Jorge Mendoza. You'll have some difficulties qualifying for a Loan. Not because you are planning on using an FHA Loan - it's because you are Self Employed and the challenges of verifying and documenting your income as a Self Employed Person.

Talk to several Lenders and find one you feel comfortable with - lay your cards on the table and let them counsel and guide you on how best to qualify for the loan you'll need. 

Note: A Lender wants to Lend you money - it's what they do! Meeting with a Lender doesn't cost you anything. I would be cautious about allowing numerous lenders to run your credit until you settle on a specific Lender to assist you in the transaction. Once you get under contract, Lender will be looking to collect monies for Appraisal and a few other expenses. 

Hopefully some of the Lender types on the forum will weigh in on other things you should consider to achieve your goals.

Good Luck!