Financing for a tipped income person

6 Replies

Hello everyone- I need your advice!

I am 26 working full time as a bartender and a part time real estate agent. I am looking to purchase an investment property, preferably a multi family unit between 2-4 units in St. Louis, MO. Unfortunately banks and lenders do not like seeing tipped incomes. I have been disqualified for a mortgage simply because I have not been at my job long enough. I make plenty of consistent tips (that are claimed on paychecks) but they still will not put it through underwriting. Is there any way around this? Any advice would be great!

I have a mid 700 credit score, meet debt to income limits, and have downpayment funds pending the price of the property.

Thanks! Is there a good way to start searching or just ask around and network into one?

If you have been on that job for 2 years and can show 2 years of income tax returns, they should accept it. They will probable average the income over the two years.

If you haven't been in an industry for 2 years they won't let you claim income from any job/industry (I believe the exception is if you just graduated from college and are in the industry your degree is in)

Good suggestions above. I would look for a different lender and /or check with local banks. If you are claiming your tips and have 2 years of returns there shouldn't be an issue. Often times lenders who don't have experience with a specific scenario, like you described, do not know how to look at the deal so they just say they cant do it. 

Medium pinefinancialgrouplogoTravis Sperr, Pine Financial Group | [email protected] | 303‑835‑4445 | http://www.pinefinancialgroup.com

Yes as stated above you will have to show proof that you have been getting tips for the past two at least.  A VOE ( verification of employment ) will prove this from you HR department and from there you should be golden.   Have you been working there for 2 years at least?

Shaun Weekes, Innovation Lending Solutions | [email protected] | 949‑610‑3126 | https://www.facebook.com/Innovation-Lending-Solutions-Inc-261955880814516/ | CA Agent # 0L51686

Thanks for all the help! Unfortunately I have only been at this job since October 2012. I'll check with some local banks, and if nothing else just wait out the 6 months.

Thanks!

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