Posts

Loans Just Got Tougher For the Self-Employed; Low Supply Keeping Prices Up

LOW SUPPLY/PENT UP DEMAND KEEPING PRICES UP Keith Robinson, Chief Strategy Officer of NextHome, pointed out in a post last week that there are about 30% fewer listings on the market this year, relative to last year. B/c there is plenty of pent up demand right now facing this decreased supply, home prices are remaining […]Read More

When You Should Drop Your Husband

Yesterday, I received the following text from a savvy agent we have worked with for years: “I received an offer on a property and it’s ‘wife only,’ stating ‘husband is starting a business and that’s why he isn’t on the loan.’ I didn’t just fall off the turnip truck. Does this mean the husband has […]Read More

Need Income and Bonus History

We often have self-employed borrowers come to us who are rolling in profits and cash, with perfect credit and everything else a good borrower needs. BUT, they do not qualify for conforming financing. The reason is that they often lack the necessary income history. We almost always have to average the last two years of […]Read More

Need Income History No Matter How Well Doing Currently

We often have self-employed borrowers come to us who are rolling in profits and cash, with perfect credit and everything else a good borrower needs. BUT, they do not qualify for financing. The reason is that they often lack the necessary income history. No matter how good their current year may be, we cannot use […]Read More

Tweaking Tax Returns for More Income to Qualify; It’s That Time

Self-employed borrowers can tweak their tax returns to qualify for mortgage financing. A contractor called us this morning to qualify for mortgage financing. His gross revenue last year was $400,000. His net income on his tax returns, that he has not filed yet, however, is only $58,000. To reduce his income and tax liability, the […]Read More

Using “Rough Draft” Tax Returns To See If Someone Qualifies

We have several self-employed borrowers who could not qualify for the properties they wanted in 2013 because their 2012 tax returns had too little income. The borrowers all had better years in 2013 than they had in 2012, and they all intend to send us rough drafts of their 2013 tax returns in early January […]Read More