I'm guessing not good? Does 60k W2 income look a lot different than 60k 1099 income?
I'd like to be eventually self employed, but real estate is my primary goal in life. I'm willing to stay at my job if banks hate self employed income. Please note that I would have a 1099 income form (not just declaring what I earned).
Last time we applied for a mortgage, I think they said that they do not consider 100% of a self-employed person's income. However, it may have been that they meant that they account for income tax, SS tax, etc. (It's been a while.)
Basically, they said we had to have at least two years income tax returns to prove how much we earn. Other than that it seemed pretty much the same as W2 earnings.
Your best bet might be to get with a mortgage loan originator and just ask them what you'd need to qualify for a mortgage if you were self-employed. The ones I've talked to were always happy to talk to a potential customer:)
Your tax returns determine what your income is. Some write offs will count against your income. If is is in the same line of work that you are currently doing, you may not need a full two year history.
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
Join the Largest Real Estate Investing Community
Basic membership is free, forever.