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Mdavis84

self employed mortgage

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I have been buying a home on contract purchase price was $183,000 on July 2016 and have paid it down to $53000 and have done $150,000 worth of improvements to the house/property, however my income on tax returns after deductions is only around $25000, if they add back in depreciation for equipment my income is closer to $100k.  Does any banks do these kinds of loans anymore? The guy i bought it off of is okay with carrying the loan a little longer, but I would like to get them paid and have a mortgage reporting on my credit to help it improve. 

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If you only need to finance $53k then depending on how much your monthly debt payments are, $25k/year of income usually will be able to qualify.

 

Do you have a lot of monthly debt payments?  If so, how much are they?

 

How much are the property taxes & homeowner's insurance on the home?

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16 hours ago, liverichly said:

If you only need to finance $53k then depending on how much your monthly debt payments are, $25k/year of income usually will be able to qualify.

 

Do you have a lot of monthly debt payments?  If so, how much are they?

 

How much are the property taxes & homeowner's insurance on the home?

Property taxes are $2505 a year

insurance $1800/year

truck payment $615, car payment $249

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The truck & car payments are killing the debt ratio. 

 

Are those payments made by the business and do you also account for their expense on your tax return?  If the business has been paying them for the past 12 months, from a business account (not a personal account), and you factor in the expense on your tax return, then they can be excluded from the debt ratio and your $25k/year of income should be enough to qualify.  

 

If the business isn't paying them for the past 12 months, or you haven't factored them in as an expense on your tax return, then for self-employed people there are loan programs that will use as 12 or 24 month average of bank statement deposits to calculate your income.  Rates for those programs aren't as good, but it may allow you to refinance... and if you are talking about only financing a $56k loan amount then the difference in rate won't impact the payment very much.

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