My husband and I went to see a gentleman about pre-qualification for a mortgage. The guy went straight to the credit reports, and told us what we'd need to fix before we would even be "mortgageable". I was told by an agent that FHA qualifying minimum score was 530. My median score is at a low 556, hubby's is at an even lower 427. But, apparently FHA recently set a new score standard of 620 to qualify. Also, my husband has been self-employed for over 4 years now, and 1099's have gone from $75,000 to $100,000+ over the years. After deductions & credits, his "bottom line" is pretty low, which is our taxable income. The guy told us that a new law/provision NY Gov. David Paterson signed now turns that bottom line into the ONLY income earned! Because our return now supposedly shows such little income, we wouldn't qualify for a mortgage for anything over $40,000 if that much! He said the business would have to turn into a Corp., and hubby would have to receive a W-2 showing income. Has anyone heard of this? I cannot find any references to this, maybe I am not looking properly? I find it hard to swallow the fact that the self-employed have just essentially been extremely limited in the right to achieve the American Dream! This is ridiculous, any help would be appreciated.
Sounds ridiculous to me, you two are busting your rear ends trying to make it and this is the reward that you get.
I would suggest that you post your questions on the mortgage forums at the top of the page. Their are a lot of people that work in the industry on that forum. I think you will get some better results there.
Yes good point this is an excellent post for the mortgage forum. Everyone else can use W2's so just because you are self employed does not mean the bottom lione should be help as your income. Check over at the mortgage forum and if you need any more help let us know.
I am hoping that they can find their way to the mortgage forum, guess we know if the conversation stops here.