Mortgage problems for the self-employed

I am currently trying to get a loan with debt to income of 32%. If the new loan would go through I would have a debt to income close to 47%. A good credit score of 750 and I am having a hard time getting banks willing to look at it. I have two that will but I know my tax returns won't have what they need. Frustrated when you are a responsible person.

ITIN LOANS WHERE MADE FOR ILLEGAL, IMIGRANTS ARE THIS TIPE OF LOANS ARE PERFOMONIG BETTER THAN ANY FHA LOAN OUTHERE.SOME OF THIS CUSTOMERS HAD NOT VERIFICATION OF INCOME AT ALL TO BE CONCIDER A GOOD CANDIDATE FOR THIS PRODUCT ,SAYING THAT ,THEY STILL PERFORM BETTER THAN FHA LOANS.
IF THEY CAN LEND MONEY FOR ILLEGAL INMIGRANTS ,WY THEY CAN'T LEND MONEY FOR SELF EMPLOYED HARD WORKING AMERICAN FORCE

Carlos,

You ask why "they can't lend money for self employed hard working american force?" I'll tell you. Sure, most Americans may or may not work hard but the point of a loan is paying back. Most immigrants are people of their word. If they say they are going to do something they do it. For example, in Mexico you can purchase products/services for cash or credit. They take the most basic of information (basically your name and where you live) and grant you instant credit (for a premium rate of course due to their lenient approval criteria). Most Americans have an entitlement mentality. "Oh look at how great I am...I deserve this...give it to me." With no intent, much less financial ability to repay a loan. That's why the US is having such economic problems. Their egos are over inflated and they take on more than their means.

P. S. I was born in the US and I love this country and opportunities it has allowed me. I'm just calling a spade a spade.

This situation is absolutely madness. A year ago I was working for the "man" a large corporation and could qualify for the largest loan I wanted. Now I take over my family business have a credit score of 770 and can't even get someone to talk to me about a loan. These brokers have literally hung up on me as soon as they found out I am self employed. Someone has got do something to help out the truely good small business people.

Same thing here.

I have been self-employed for about 17 years. Even with a debt to income ratio of about 30-35% and a credit score of 702, no bank is willing to do anything without the evil tax forms. I refuse to let go of my deductions and throw away a big chunk of money to the IRS just to refinance my mortgage. Ridiculous! There has got to be another way... somewhere.

Self Employed, have two homes - with mortgages I always intended on refinancing if I stayed put. Well - I've stayed put, perfect credit, never a late payment - but trapped as they adjust and never able to get equity out again...well, not unless I no longer take any deductions and just pass everything through as highly taxable income. In business 15 years. At 2-300k/yr, I am livid! A sitting duck! I was only able to do stated income loans - showing enough asset to qualify - now I need returns?! I could barely qualify to rent an apartment with just returns! Totally unfair. Neither McCain nor Obama get it. Don't worry about raising and lowering fractions of a percent in taxes on small business owners - we know how taxes work. Instead we will lose 10's of thousands in taxes over a couple years just to buy a small home...and then go right back to doing business the right way. If there is no benefit to taking a risk and running your own business, and you can't reinvest into your growth because you are too busy paying taxes so you can qualify for a home - why bother? I'm trapped in my mortgage and my home. Why not just walk? The banks caused this by changing the rules in the middle of the game last year - thinking nobody would walk...well it backfired. And it will continue if they don't pull their heads out of their Palin.

first off we are all immagrants so get over it already. I to am self employed 22years worth and lost pretty much everthing to the housing collapse. bancruptsy has actually cost me more than what I lost and had emergency surgery one year after. So try going from 125k pryr to less than 20k and add medical bills. and to the tax collectors where is the little peoples bail out? oh their not invested in us, I forgot!!! so we don't need to look for any polytick to fix this problem same old lie different blood sucker. we are still the greatest nation on earth by gods grace only and by his grace we'll survive this one I pray and so should we all!

It looks like we are all in the same boat. I am frusrtated! My husband is self employed we have a 718 credit score, have had our home for 9 years with never a late payment! We are no trying to consolodate some debt and refinance and no one will touch it once they see tax returns. As a self employewd individual you take as many write off's as you can to avoid paying so much in taxes! That is my right. I have to state all my income, right..yet I have been told not to state all my expense...that doesn't seem fair. There has to be something that can help small business owners. My husband is not a doctor or a lawyer, just a custom carpenter trying to get by in these hard economic times when no one wants to spend money on fixing up homes. If we don't get the help we need soon, I am afraid there will be an adverse affect on my credit and managing my high interest debt. Please someone HELP!!!

I've been working as a Project Manager (Government construction) for 20 years, with different private contractors. I was a W2 employee until 2008, the year that I went self-employed. I had $140,000 approx of W-2 income for the last 5yrs (well documented thru tax returns), and 2008 my adjusted net income is $140,000.00. My fico score is 766, I am trying to get a mortgage for my first home (only 239,000) in an area that homes are $390,000. This home is living conditions (no issue there)........the problem I'm having: self employed for 2008, even tough I had my corporation established in 2004, and for 3 years I was working as an employee for another company as well as, income from my corporation....yearly taxes for me have been approx 30,000 to the IRS for the last years!!! AND I am going thru hell trying to get a mrotgage!!!!

If I dont get this mortgage...this is it for me!!! no more taxes, I'll write off 99% of my coporation taxes, will take all the net money and move outside the US.....this is not fair...struggling and paying taxes for ALL my adult life since college, excelent credit.....not fair at all!!!

My husband and myself have been self employed since 2002.For the last 4yrs we had our primary residents and a investment property. We sold our primary a year ago and now with the changes in the morgage industry we cannot get a loan. We have paid on time have a 750+ credit score and the mortgage companies have told me if i had a weekly pay stub and had just claimed bankrupcy and a 450 credit score it would be know problem getting a lone!!! This is bull crap, you pride your self with paying taxes and making payments on time and with your score it shows. People who are self employed work harder everyday and thinking harder trying to provide a living for there famlies and this is the thanks we get. The mortgage companies will help first time homebuyers with 8000.00 credit to purchase and if they do not have a down payment they can get grants. Now that seems risky to me. Congress wants the economy to pick up they should not discriminate against the self employed.

I've been self employed the last 5 years. My 07 and 08 returns show average net income of $82k/yr takehome with 570k gross. Between my husband an I we took home $268k in 2008. I'm a first time homebuyer, credit score 740 750 762. I have currently a 2% debt to income ratio. All i have are a few student loan payments - I have an 04 and 07 escalade paid off, and an 06 BMW M5 paid off. Also, I have $100k cash in the bank and I still cannot get a mortgage loan in the amount of $270k - The appraisal came back at $385k. WElls fargo OWNS the house as its a foreclosure, and I am applying through Wells fargo. I can't get a loan because my "self employment" income is not guarenteed.

You would think wells would take my $100k and run! Can anyone help?

LOL if Nikki cant get approved what chance do i have... guess i better find a house i can pay cash for and say F-U to the Banks

Vinny, I agree with you. My husband and I have waited for so long to purchase a house. We saved up enough money for downpayment and have $65,000+ in liquid assets. My husband's credit score is 816 and has never filed bankcruptcy, no late payments on any of our financial obligations...and no debt. We just wanted to buy our first home (a townhome in Maryland) and we were denied because of my husband's self-employed status. I could not use my income because my small business is less than 2 years old, and even still, we're both self-employed and whatever income I can add to my husband's income, they still wouldn't grant the loan. What's even unfair is, my husband's friend has had 2 bankruptcies and one foreclosure in the past with a credit score of 712, but he was able to acquire a loan!!! That's RIDICULOUS!! Now, he's under the water paying for their mortgage!

After reading the comments on here, it makes me feel better that we're definitely not alone. We were very upset yesterday, but we're moving on. We're just going to keep investing our money so it'll grow and keep saving until we can afford to purchase a house without financing. That's our plan now unless the government or the banks will change something about their lending rules.

There is no such thing as an "equal opportunity lender". Until the day every loan applicant slaps down their tax returns for scrutinizing, or better yet, until they start giving 1099's the same face value as the beloved W-2 (which by the way shows 100% gross pay just the same as the 1099), well then we, the self-employed are screwed. Just because a person with a W-2 initially looks good on paper doesn't mean it's the whole financial picture for that borrower. For example, if you are W-2'd and also have income losses through another investment, or haven't paid your taxes for a couple of years without a judgement lien yet on record, or have additional failing business losses...YOU CAN SIMPLY QUALIFY with your W-2!! They never ask for tax returns for w-2 borrowers to see their true financial picture, only the self-employed must. If they give credit for 100% of the gross on a w-2, why not a 100% on a 1099 form as well? The tax forms AGI is NET income NOT GROSS income. Never has been fair. I was a lender myself for 10 years and never felt this was fair. Are they really that ignorant and stupid? Come on! They never report how many foreclosures are good ol' W-2 borrowers who have lost their jobs. This country has been slipping since 2001. Blaming the banking industry is a riot! What about the cost of war, the cost of oil/fuel?? People lost jobs 1st. Even most of those horrible "liars loans" would still be going strong with payments being made -on time- if the people had their jobs. Giving money to the banks and the houses too, only to find out they are sitting on the money and not loaning it out is a crime. Greedy people. I hope they hurt financially. They are too blind to see there are thousands, if not millions, of legitimate self-employed people available to purchase homes and help contribute to market correction. Total reform is needed if there is ever going to be an "equal opportunity lender"!! hahahaha what a crock!!!