mortgage help??

[tyoung]

hi. i was wondering if anyone could help me...i'm an o/o for fedex and i'm trying to get a mortgage to buy a house. ok, here's the problem. the banks i have gone to all want to see my last 2 years tax returns. i have taken my deductions and have shown a loss for both years as my accountant recommended. as soon as the banks see this, they say i cannot get anything...it's pretty much as if i don't even have a job?? now i know there are others out there that have done the same thing...is there ANYWHERE that will give a mortgage to someone in this position ? by the way, i'm a single guy, so i can't use my wife...lol. i have a significant down payment and have a 702 credit rating... i would really appreciate any help...thank you!!!

Tom

 

[layoutshooter]

Do you happen to have a relationship with a real local bank, not one of the national chains? Often people in your position do better with bankers they know. Do you belong to a credit union? Sometimes they can do more. Tough spot to be in. Good Luck. Layoutshooter

 

[Streakn1]

Welcome to the world of being an O/O and home mortgages! Been there and done that!

Its amazing how when you have a regular (landed with a steady paycheck) job the banks all but fall over each other (before the recent financial crisis) to sell you a home mortgage. But once you go into your own business, especially the trucking business the game changes drastically. Most first time small businesses are all but dead in the water for at least the first two years. Showing the business as operating in the red may be great on getting those income tax breaks at the end of the year. Getting credit, NOT!

Don't give up. Be persistant! Consider the possibility that you may have to bite the bullet the first few years and take on a higher interest mortgage (as long as you can afford it) until you prove that you do have the ability to make the monthly payments on time each month. Then you will be able to re-negotiate a new mortgage with better terms. Or the other option is to wait a bit and try again after the business is showing a profit capable of supporting the mortgage requested. Most banks tend to be reluctant to look past the "Net Gross Income" earned. Afterall, thats what they think the mortgage payment will be coming from.

You may also want to read Phil Madsen's articles on "Business Planning". Maybe that will help.

 

[pjjjjj]

Try a 'mortgage broker', they will know of any resources who might cater more to 'self employed'. They might also have some other ideas. Sometimes they also know of personal investors looking to do mortgage lending (provided you have a large down payment?)
The claiming of deductions to net a zero income is a two-edged sword.
Best to buy your house before you become self employed.

 

[arrbsthw]

Try to find a mortgage company that does
manual underwriting. Not by your Fico score.
that may help. Dave Ramsey advertised on his
show for a company .. I think it is Church hill
Mortgage Co.

 

[Wingnut]

Tyoung: I sent you a PM listing some financial institutions that can help you out. I live in the same area as you and know exactly what you're going thru.

 

[hedgehog]

Some of the local banks you apply too, are well aware that even though you are showing next to nothing after your deductions realize that your disposable income is very high.

That's not the problem.

What is the problem, in most cases your bank will have a tough time selling that loan. (Usually within 90-180 days)

Most locals do the underwriting, sell the loan off, but still service the paperwork (i.e., payments, late fees, line of equities, etc., etc.)

So, with that in mind, they pretty much know how tough that loan will be to sell.

They may also use this criteria to justify a higher mortgage rate, as posted previously.

Don't give up, keep looking.

 

[ATeam]

In January, 2008, Business Week magazine published an article that projected an additional 25% decline in home values. (See: Housing Meltdown)

That was before the series of bailouts and government takeovers of businesses occurred, before the $700 billion bailout package was passed by congress, and before mortgage loans led to the failures of major banks.

All of this is creating a shift in how banks view themselves, their customers and home loans. With houses now viewed by banks and other lenders as an asset that depreciates in value, using one as collateral on a loan is not as easily done as it was before. Thus, home loans will not be as easily obtained as before.

We are witnessing a paradigm shift. The assumption that house prices will always rise has been shattered. That is not to say people cannot borrow money to buy a house. People are doing so even in these challenging times. But if you present anything less than a perfect profile to a bank these days, you will have an uphill climb getting a home loan.

That may not be all bad news. With no bottom to the housing price decline in sight, the home you want today may be available next year at a lower price.

 

[LDB]

Find someone who does manual underwriting. Churchill Mortgage would be one possibility.

 

[tyoung]

just wanted to say thank you to all who replied. i still have had no luck, but will not give up...

 

[Scuba]

Ok been there so I called my accountant and she prepared another set of records. You have tour tax records but have your accountant make a profit and loss statement to show that without the perdiem deprecation etc that you did make money it worked for me

 

[iceroadtrucker]

Well if your a single dipper and not a double dipper then Ur gona be hard up.

Myself Im a double dipper along with my wife going to be the same way a double dipper as well. Hmm interesting concept isnt.

Those of U out here that follow the million dollar plan I hope Ur double dippers as well.

But then again for both me and my wife we can be considerd quadroople dippers as we are together. Hm.

But then again Northorp and the govt and Contracts go hand and hand.

OOOPS I guess she will be a Tripple dipper then. darn.
well toghether that makes us Fipple ROTFLMAO

Whats that got to do with mortages.

Think about what U just said, Who going to give a loan to some one that business is in the red.

However make yourself an employee and keep the business seperate and U may just get that Loan then again maybe not.

Banks ect are funney that way, but then again if u did military service Might try the VA back loan then might be loan yes.