I JUST started a business and want to buy a home, what do I do?

You probably will need a 2 year history if this is the first time you've been self-employed in your line of work. I wish you well!Paul

Most lenders prefer to lend to borrowers with stable income - like a salaried position. It is much riskier to lend to business owners, especially if the business is newer. Even if it is doing extremely well right now, lenders will probably want to see more like 2 years business history rather than just 6 months. Good luck!!

Unfortunately, when you are newly self-employed, it is very difficult for a lender to answer the question, "what is your income?" Therefore, what we do is require you to be self-employed at least two years. We will then look at your last two years Federal Tax Returns, see what you reported for income, see what you reported for expenses, and whatever is left, averaged over the past two-years is what we will calculate at your income. So you have awhile before you can get a home loan. For more information, visit http://joemetzler.com/self_employed_homebuyers.htm

Unfortunately, when you are newly self-employed, it is very difficult for a lender to answer the question, "what is your income?" Therefore, what we do is require you to be self-employed at least two years. We will then look at your last two years Federal Tax Returns, see what you reported for income, see what you reported for expenses, and whatever is left, averaged over the past two-years is what we will calculate at your income. So you have awhile before you can get a home loan. For more information, visit http://joemetzler.com/self_employed_homebuyers.htm

First, the definition of self employed: A borrower with a 25% or greater ownership interest in a business is considered self employed. If you have a partnership where you own less that 25% and are paid W2 wages, you may still be able to qualify as a W2 worker. There are four basic types of business structures: sole proprietorships, corporations; limited liability ('''S''' corporations); and partnerships. Each type requires slightly different forms of analysis. Income from self employment is considered stable and effective, if the borrower has been self employed for two or more years. There is a possible exception for this on FHA loans. The FHA underwriting Handbook states: "Due to the high probability of failure during the first few years of a business, the requirements who have been self employed for less than two years are: to be eligible for a mortgage loan, the individual must have at least two years of documented previous successful employment in the line of work in which he/she is self employed, or in a related occupation. Note: A combination of one year of employment and formal education or training in the line of work in which the individual is self employed or in a related occupation is also acceptable." Overall, it's tough unless you've got at least one year of tax returns showing self employed income and a very well documented prior work history in the same line of work. Hope that helps... NOW, that all being said, we also have options for a non-occupant co-borrower if you had someone who was willing to sign on the loan while you occupied the property. We may not be able to use your income, but could have you on the loan, thereby getting the mortgage payment history. Later, once you have your solid income history, refinancing to remove the co-borrower. Just a thought. Without knowing your total resources available, just pointing out some options you may not have thought of. We are a direct lender in WA State and recently ranked in the Top 100 mortgage lenders in the US. Glad to help if you need more assistance! www.LandHomeNW.com

Pretty much all the comments here are correct. Most lenders will require you to be self-employed for two years. However, like it or not, the sub-prime market has been making somewhat of a come back. Sub-prime doesn't always mean someone with bad credit. It could mean who does not conform to Fannie Mea or Freddie Mac guide lines and therefore are a higher risk. If you feel 120% certain your income will continue, you might look into this avenue and refinance out of it in a couple of years. You will pay a high price in the form of a higher rate and fees and will require a sizable down payment. Be very, very careful when considering this type of loan.

The rules are pretty specific when it comes to self employed borrowers... FNMA guidelines say that you need a minimum of 2 years filed tax returns with supporting income to qualify for a mortgage... there is an exception though... example: you have been in the roofing business for 20 years, and one year ago you decided to start your own business... you have filed at least one years federal tax return and you have enough income to support your debt and the new mortgage payment.. This would be acceptable per the guidelines, however, some lenders might not allow it.. other than that,... you'll need to years complete history to qualify... .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

The rules are pretty specific when it comes to self employed borrowers... FNMA guidelines say that you need a minimum of 2 years filed tax returns with supporting income to qualify for a mortgage... there is an exception though... example: you have been in the roofing business for 20 years, and one year ago you decided to start your own business... you have filed at least one years federal tax return and you have enough income to support your debt and the new mortgage payment.. This would be acceptable per the guidelines, however, some lenders might not allow it.. other than that,... you'll need to years complete history to qualify... .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Locate a lease-to-own home with at least a 3-year option to purchase. You will need to show sufficient income on Schedule C of IRS form 1040 for 2 tax reporting years, in order to qualify for a conventional or FHA loan. Be sure to provide and save, copies of separate checks, if any of your monthly payment goes toward the down payment deposit.

The only other option, besides what has already been suggested, is to see if there is a "private money lender" who might be willing to loan the money at this time with a payoff in three years - and then work with a conventional lender in two years to get back into regular loan. The downside is that the interest rate would be around 9-12%. Sorry we can't provide more options.

All above answers are correct! Most lenders prefer to have 2 years history in your line of work. Best of luck to you.

Pretty well said by the previous posts, Private Money, non-occupant co-borrower, lease option for the next few years, and there are still deals out there that offer owner financing depending on the down payment. All good advice - good luck to you!