School me on a mortgage loan for us 1099 guys.

[CodyWitt]

You Dang Skippy, tax man is da devil.

My worst effective tax rate was 33% one time and that aint counting 12% self employment tax. I liked to died when I wrote that check.
My CPA laughed and said I told you to pay more quarterly tax, but you know everything so here you are. I was balling,Lol.

This sounds miserable..... luckily I’m filed as an Scorp so only one tax for me. Maybe trumps new tax laws will help me out.

[CodyWitt]

if you make a 100k a year net being self employed you should be able to get most any kind of loan With a 1099trail you can prove your income to any loan co

The problem is I don’t want to wait two years...

[Radar]

What did it have to do with?

I've been self employed my whole life and never had an issue. I'm just curious as to what to look out for in the future if ya'll are having issues.....

https://www.forbes.com/sites/trulia/2014/06/13/how-to-qualify-for-a-mortgage-if-youre-self-employed/

I was not showing enough profit.

[Radar]

This sounds miserable..... luckily I’m filed as an Scorp so only one tax for me. Maybe trumps new tax laws will help me out.

You will pay tax either way, we looked at several options and the more you make the more you pay.

[Plain Lucky]

You will pay tax either way, we looked at several options and the more you make the more you pay.

Yep but S Corp will be less. Someone gave the OP some good advice up front.

[Radar]

Yes, I started out as a DBA. Learned real quick on that one. My CPA I have now is pretty good and has me covered. My original CPA was no bueno.

[ontarget]

I was in the mortgage industry as a loan officer and in management for a number of years. You need at least 2 years of tax returns and typically it is an average of your NET income that they go by. Hometown or private is probably the best route right now.

[texasdeerhunter]

A locally owned bank should be able to do the loan for you with your 1099 and previous years tax returns. Banks can typically only offer a 3-5 year ARM though. Your problem you may have right now is qualifying for a 20-30 year fixed rate mortgage in the secondary market. Those guys want at least two years of proven income. Your best bet may be to find a local bank, get them to approve a 5 year ARM, then refinance that note with a secondary market, long term fixed rate mortgage when you have 2-3 years worth of proven 1099 income.

With a 1099 proven income and credit scores as high as yours, you would have a good chance of approval at my bank. Granted, it would be an ARM though

[Tex_Cattleman]

A locally owned bank should be able to do the loan for you with your 1099 and previous years tax returns. Banks can typically only offer a 3-5 year ARM though. Your problem you may have right now is qualifying for a 20-30 year fixed rate mortgage in the secondary market. Those guys want at least two years of proven income. Your best bet may be to find a local bank, get them to approve a 5 year ARM, then refinance that note with a secondary market, long term fixed rate mortgage when you have 2-3 years worth of proven 1099 income.

With a 1099 proven income and credit scores as high as yours, you would have a good chance of approval at my bank. Granted, it would be an ARM though

Exactly what he said.

[Codie]

You need an in-house lender that will work with you. Get your 2017 return completed as quickly as possible in 2018 to be able to provide at time of application

[Patton]

Every bank I talked to wouldn’t give me time of day without 2 years of returns.... even with the land and a sizable down payment. Guess I’m using the wrong banks.

This is what most banks will want to see- 2 years worth of returns. I know several 1099 people who will wrote off as little as possible for those two years as well in order to show higher income. Good luck

[Radar]

I was in the mortgage industry as a loan officer and in management for a number of years. You need at least 2 years of tax returns and typically it is an average of your NET income that they go by. Hometown or private is probably the best route right now.

I am fairly certain that I had to sign a form and the bank got all our information direct from the IRS. Back then the banker wanted to see what was submitted to the IRS not what I gave him.

I was trying to buy a farm and only been self employed a few years. I was showing a loss for 3 years and it was true.

It was wishful thinking on my part, however the banker man acted like I was robbing his bank. I knew that man all my life and had a real high credit score with a mortgage. Today I only have a business checking and savings account and it aint thru him.

[bowhntrmatt]

I ran into similar issues buying my first house. Worked a straight commission job making about 150k gross, but I had only been there about it a year and a half. They wouldn’t count any of my income for the loan approval. Luckily we still got approved on only my wife’s teacher salary. Made me mad to no end when they wanted every one of my check stubs but still wouldn’t count my income.

[wal1809]

Go to an independent small town bank. I have all but one house financed at a small town bank. THe house I live in is still financed through US Bank and I ******* hate US Bank. We flooded twice in in two years. They hold the money as the repairs are completed they send an inspector then pay out in increments. I understand that procedure is needed, BUT they never pay out as fast as they tell you. It took 30 days for them to pay out the start up money this time. When you call them on the telephone they are trained to drain every ounce of energy from your brain.

The last time I walked into my bank in Port Lavaca and asked to see my lender, the lady offered me coffee and thirty seconds later I was talking to my baker about the 160 inch deer on the office wall. He had to turn his computer to show me the years of progression the deer had before he shot it. We talked about how the trout bite was heating up ect. thirty minutes later he asked why I was there. We talked about a refi after the repairs are done.

So my choices are call somebody in Ohio who doesn't give a rats hiney about my problem or call my banker and talked deer hunting before we get to business. The choice seems rather clear here.

[Tbone3636]

You need an in-house lender that will work with you. Get your 2017 return completed as quickly as possible in 2018 to be able to provide at time of application

I’m a 1099 guy with my own company and Cody took care of me quick and easy !


Sent from my iPhone using Tapatalk