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I am 28 years old. I bought my first house 6 years ago and we are ready to sale in this dropping market to upgrade out of state. will I have problems getting a loan and which loan is best for my lifestyle. I am self employed.

6 Thoughts on My credit score is 731 and I gross over $200K a year. what type of mortgage loan would be best for me?
  1. Reply
    Rob
    June 11, 2012 at 3:00 pm

    Sorry u will only quailfiy for cash buys.
    1 . self employed u need real solid IRS
    accounting for 5 yrs at least to get a best
    loan in todays mortgage market.
    2. buying out of state, ur old state income
    will not quailify for loan in new state. u r self
    employed.
    3 best bet . sell old house save $ $ in do
    nothing account. Rent cheap safe small
    living like starving students saving 60%
    income just for 1 yr. given savings and
    new savings u could buy cash upgrade
    house then.
    OF course that is counter to popular culture.
    but who wants to b debtor like them.

  2. Reply
    Hi There!
    June 11, 2012 at 3:00 pm

    jro

  3. Reply
    Josh
    June 11, 2012 at 3:28 pm

    I have found this site that has been very help full for me, even if you are just comparing simple prices or needing to actually buy. Just thought it might be something you could find help full. This site is very user friendly and informative. Hope you figure out what you need!

  4. Reply
    Bulldog
    June 11, 2012 at 4:08 pm

    In my opinion, you shouldn’t have as much difficulty as others think. For one thing, you have a very good credit score. For another you have a track record of paying a mortgage for the past six years. And finally, you have a business that seems to be doing well.

    I’ll admit that the self employment piece will add a degree of difficulty. But if you have tax returns and bank statements showing income coming in, you should be able to mitigate that issue. You might have to pay 25 basis points more, but you’ll still get the loan. One caveat – the above depends on what business you’re in, and whether it is viewed as sustainable.

    I would, at all costs,avoid an adjustable rate mortgage, or any other gimmick – interest rates are at historic lows – now is the time to lock in cheap, long term financing (like a 30 year fixed rate mortgage)

    Finally, I wouldn’t worry too much about selling in this market, since you’re also buying in this market, and moving up, meaning you will most likely save more on your purchase than you will lose on the sale of your current home

  5. Reply
    alexx412
    June 11, 2012 at 4:24 pm

    I agree with Rob.
    Being self employed AND relocating is tough for income approval as you have no history of earning that in new location.
    HOWEVER,if the business if this is something that is done online (something that is not limited to a location), then you should be ok. Typically you would have to have a letter from your accountant to address that.
    If you short sale on your home that will probably be a problem, depending how your old loan will be reported on your credit report
    As far as a loan, it will depend on your downpayment, but income wise, your qualification will be based on your adjusted income (after your expenses, writeoffs, etc with some depreciation,etc added back into final income calcuation; it’s kind of hard to explain)
    Depending on income level and self empl business situation, maybe you can qualify for the new property as 2nd home; rent current for a while. Just a thought.
    Good luck!

  6. Reply
    BetheOne
    June 11, 2012 at 5:02 pm

    There are loans for self employed people with high scores like that. How much you will put down is a question the lender wants to know.
    More then likely, 10% to 20% down is what you will need for a home above $ 417,000. What is your AGI?
    no late payments?
    have saved up money?
    You should have at least 50k liquid. 3mos of normal income.
    People gross a lot but if their AGI is 50% of Gross there could be issues.

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