All Forum Posts by: Eric Veronica

@Noureen A S. not much difference when qualifying for a purchase mortgage or a cash out refinance mortgage 

Qualifying for a mortgage as a self-employed person is hard if you don’t claim income or if you are working with a loan officer who isn’t familiar with tax returns. I speak with self employed clients all the time who have been declined by other lender before even providing all the necessary documentation. 

There are certain non cash deductions on a schedule c or a schedule e tax return that can be added back such as depreciation, amortization, one-time expenses, business mileage, and others. 

@Alison Rauch if you are planning to buy and hold you may want to do some research on a Fannie Mae Homestyle Renovation loan. They offer investor financing up to 85%LTV. For example let's say you purchase a home for $130,000 and have a contractor quote of $70,000 in renovation resulting in a total acquisition price of $200,000. This mortgage scenario would allow you to finance up to $170,000 with only $30,000 down. (Primary residence will allow up to 95% LTV)

The loan will close and the contractor will have up to 6 months to complete renovations. The mortgage company will Pay the the contractor a few draws throughout the process. 

This loan is a one time close that offers rates comparable to normal conventional rates. Including 30 year fixed products. 

I would be happy to help you with this but unfotunately I can only offer renovation financing in Ohio, Michigan, Kentucky, Indiana, Pennsylvania and West Virginia. Looks like your property is in NY. 

Below is the Fannie Mae fact sheet which can provide more detail. Not all lenders will offer this product so you will need to do your research and make sure the lender you choose does not have overlays. 

Good Luck!

https://www.fanniemae.com/content/fact_sheet/homes...

@Emily Wells does his current job pay him a W-2? Will his new job be a paying him a 10-99?  If the answer to both of these questions is yes then you have a big problem. Your husband will be going from being a salary/hourly employee to self-employed driver who will most likely file a schedule C on personal tax returns. 

If he truly is still a full time hourly employee who is paid via w-2 then he should be able to qualify based on his hourly rate X 40 hours X 52 weeks per year. 

The location of the lender isn’t relevant. Rules like this don’t vary by state. 

@Aditya Maini I mean that you will need to pay off the personal loan with proceeds from the delayed financing, cash out closing 

@Aditya Maini you will have to document the source of funds for the personal loan meaning the note. The the loan will have to be paid off on the closing disclosure for the delayed financing. 

@Zachary Negron my recomendation is finding a smaller local bank with a skilled loan officer. Make sure to discuss you long term objectives rather than just getting prrapproved.  How many properties you are looking to finance, types of properties, timelines, down payment sources, etc 

@Zachary Negron my recomendation is findings smaller local bank with a skilled loan officer. Make sure to discuss you long term objectives rather than just getting preapproved. How many homes you want to buy, types of homes, sources of down payment funds, etc.  

@Matthew Scott ditto to what most of the others have said about the renovation loan options.  I would be very hesitant to invest time or money into a home that you do not own. Easy way to get burned. 

@Arianna Streeter welcome from a fellow Toledo resident :-)

@Melinda Vaughn if the agreement was a land contract then you could refinance the deal after it seasons. I’m afraid with a lease option to buy that conventional financing will not be an option.