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My husband and I have been patiently waiting to buy a home for years. We had a lot of obsticles that kept us from being where we needed to be that we have now overcome. We have been in a lease purchase for the past couple of years for a home that we will be purchasing for $250K and we have accured about 10K for the downpayment though we may be able to come up with a few grand more if needed to close.
Here are our current issues: I am self employed & my spouse is on SS Disability. His income is non-taxable. Majority of my income is through a contractor position that I have held with the same employer for over 6 years now. After our accountant completed our income taxes this past year, I was concerned it might not appear that we make enough income to qualify. I currently bring in 60K per year for this contract posiiton plus another 5-10K in additional contract work. I have roughly 5-7K in expenses however, the way my home office is setup it is a large portion of our home and after they completed the home office exemption and household related expenses, my taxable income appeared to only be about 20K.
Since the majority of the reasons my income looks so low is due to our home expenses which would be similar if we were to purchase the house, how would they look at my income for qualifying for a mortgage? Would they look at it before the home office exemption was used or after? Also, I have heard that SSD income is sometimes counted as more due to being non-taxable. Is that true? My spouses income from SSD is roughly $30K.
I also wondered if being self-employed ended up causing too much problems if my employer ended up hiring me a a fulltime employee instead of a contractor if that would change the situation. We had discussed doing that as well anyways.
I appreciate all of your input. I have been dreaming of being a homeowner for so long and we finally found our dream home that couldn't be more perfect for our children.
Best lenders for me? Self-employed
First, thank you to everyone who contributes to this board. It has really helped me over the years.
I currently have about 40k at penfed that I need to move.
I need to decrease overall utilization and interest rates on my balances and would like suggestions on who else I should apply with for new cards aside from NFCU (currently only have checking and savings with them…. when I joined my credit was BAD.
In the last 30 days, I have paid off a substantial amount of my revolving debt and an installment loan to increase my fico’s (and help DTI) for this app spree. Now I am at Overall revolving utilization of 70%, none over 89%
I have worked for the same company for over a decade but for tax purposes I am self-employed and get a 1099 and a “statutory employee w2”.
EX 713 myfico
EQ 725 myfico (613 in March ’13, 641 in November ’13)
TU 699 walmart, 675 myfico
Overall revolving utilization of 70%, none over 89%
Total Accounts 33
Revolving 6 out of 11 showing a balance; 2 more are paid off but waiting for cycle date (small balances)
Average Age 9 years
Longest age 16 years
Youngest acct 2.5 years
I considered getting CLI’s first, but hesitate due to a large amount of creditors who request documentation of income and then do not like self-employed. Also, income is a little lowed than when I got current lines.