Financing question: using self reported income

1 Reply

Hey there,

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.


@Michael Althans

 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.

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