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farmhouse
Joined: 12 May 2008
Posts: 3
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| Posted: Sun Jul 13, 2008 1:13 am Post subject: Need stated or high ratio loan |
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He is out scenario-
Self employed, own a small business for 9 years. We want to put 15% down. Money not seasoned... we sold/are selling all of our classic cars that we have been restoring for the last year... We are getting 73K next week from a couple of sales, and have 40K in the bank. Our middle fico is 700. Taxes show a gross of 120K and have about 50K(our net shows 70K) in deductions. The house we are interested in is 500K. Can we make this work? We want to put in an offer.... they seller may be willing to do a 90 day escrow becuase they have a lot of junk to move. Our cash flow available for housing is about 3500K a month. Please let me know what our options are, if any. Thanks!
p.s. we are in california |
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Steve Ching
Joined: 01 May 2008
Posts: 29
Location: Bellevue, Washington
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| Posted: Tue Jul 15, 2008 11:07 pm Post subject: Self employment income. |
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Hello Farmhouse!
This seems doable!
Just a bit of info for you: self employed borrowers do not normally qualify off of their net income (which is 70k in your case).
One normally qualifies off of an income calculated from:
Net Income + Depletion* + Depreciation* -50% Meals + Recurring Cap Gains** + Net Profit** + Depreciation** + Form 1065 Income**** + Form 1120-s Income**** - Schedule 2106 Total expenses + W2 Income + 125% of SS income.
In addition, two or three years of this income will be looked at for trends and consistency as well as a yearly to date business profit and loss statement.
The down payment required will be determined by the area you are buying in. (Mortgage insurance and not all loan programs are available in all areas).
Please give me a call 425 344 2191. America One Finance is licensed in California and we look forward to working with you.
*Schedule C
** Schedule D
***Schedule F
**** Schedule K-1 |
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