House Hacking as a young self employed person?

Question

Hi BP!

I've been going through a few different House Hacking books, listening to the BP podcast and have even been looking at a few potential properties to house hack in Jacksonville, Florida.

I'm currently finishing my degree and I'm self employed. Will this be a barrier to getting a mortgage?

I have excellent credit, the capital for a 3.5-5% down-payment within my market and I'm afraid I will not get pre-approved and many agents won't even spend time showing me properties.

If you've dealt with or overcame this (if it's real), what did you do?

Chris Carson · Answer

If you shop around and find the right lender, you should be able to qualify if can document sufficient income regardless of whether you get a W-2 or not. Excellent credit will help as the lenders will certainly see you as more risky due to the nature of your employment. I have worked with some lenders in the past that have good products for those in your situation. There are also some creative ways you could make it happen, particularly with a house hack. Feel free to PM me and I am happy to discuss it further.

Jim D. · Answer

One simple solution is to ask a financially stable family member to co-sign on your loan. Of course, they'll need to trust you and your plan, since their credit is on the line if you stop paying the mortgage. (Though on the other hand, you paying the mortgage every month will eventually strengthen their credit score.)

Chris Mason · Answer

There's no rule saying that self employed persons can't get mortgages, and in fact mortgages for self employed persons are based on Stated Income. You State your Income every year when you do your taxes, make sure your statement is accurate. :)

Chester Tan · Answer

Carolyn do you have a few homes for investing in jax?

Carolyn Morales · Answer

The Duval market is starting to peak high...keep that ln mind. The prices may seem affordable compared to other markets but will the price you pay now be sustainable in the next year or 2 or will prices drop?. I am local and I would not buy mls retail right now at this point. I would atleast look for foreclosures or my personal preference is tax deed properties. But you have to have all cash up front for tax deed properties. Duval county has online foreclosure auctions every day of the week and a huge tax deed auction at 8 a.m today with 185 properties still on the calendar. inbox me for.more info. I can't post links here.

Ingrid J. · Answer

@Dillon Carter Have you tried applying for financing? I would begin applying early as a rejection from a lender will teach you what you're lacking, if you are lacking anything, to buy a househack.

Where in Jacksonville do you ideally want to do the househack?

Carolyn Morales · Answer

@Chester Tan. I sent you a pm

House Hacking as a young self employed person?

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