First time posting. I've been reading about REI and using BP for a couple of months now, and I find that I've hit a bit of a wall in the process of trying to purchase my first home.
To make a long story short, a vast majority of my income for this year will be income I self report from tips I earn at a service industry job that pays my tips in cash. Based on my credit and my income, I should have no problem qualifying for the amount of mortgage I am interested in (between $100k-$150k) however I've been told that I need to be able to show two years of income statements to be able to use this self reported income. Being that this is the first year that this is my primary income, I don't have that available to me right now.
Are there lenders available that might have less strict requirements? One person suggested I speak with a local credit union. Would trying to go through a local (in this case New Orleans, Louisiana) based lender be feasible? Or do I really have to wait until I have been reporting my income for two years before I can purchase?
Any help at all, even just a place to turn for more info, would be much appreciated.
Unfortunately, every lender I have ever talked to will require the 2 years on your tax returns. It is because that is a requirement for loans sold on the secondary market. You could try a credit union though and see if they will keep the loan in house.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing