I'm self employed and can't get any love from the lenders
April 14, 2009 3:08 PM Subscribe
How do I get a mortgage if I'm self employed?
posted by Scientifik to Work & Money (11 answers total) 3 users marked this as a favorite
I'm self employed, have been so for about 2 years, business is doing very well in spite of the economy, I work from (a rental) home and have decided its time to buy a house. Nothing too fancy just a little 2 bedroom where I can work and play and all that.
I have good credit, a good chunk to put down but whats killing me is lenders are looking only at my 1040 Schedule C which is my income after all of my deductions. Basically the amount I'm taxed at. I make all the legal deductions I can so I don't get brutalized by the IRS however this makes my income look significantly lower and basically impossible to provide funding to.
No one at the bank has any answers other than either "Make fewer deductions" which means I'll pay significantly more in taxes, which means I can't put any money into savings. Or "Save more money" even if I save every penny I won't be able to buy a house for at least 5 years at which point who knows where housing will be.
Are there any lenders who specialize in the self employed or are a bit more reasonable and take more into account than just your tax returns?
Are there any options I have other than "wait"?