1099 NEC, who can lend with no tax info

Phoenix, Arizona
Private Lending & Conventional Mortgage Advice
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1099 NEC, who can lend with no tax info

Jimmy Rojas
Member since 2020 · 168 posts · 50 votes

I live in Phx,Az , average credit score (750), no debt at all, no dependants, in the car business make about 4k a month , $100k + in my small vehicle inventory, $35k liquid in bank.

I would be a first time home buyer, aiming for a $200k loan, %15 down, max 7% interest, could get a traditional loan but iv been working under the table for years and did my taxes a handful of times, none of them current. Not interested in hard lenders as their rates are crazy.

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  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 703 posts · 239 votes
    10mo

    Possibly, there's plenty of alternative options to conventional.  Depends which one works better for your situation but feel free to reach out if it's helpful to go through some of those. Either personal bank statements or can go off 1099s to document your income

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group548 Reviews
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  • Jimmy Rojas
    OP
    Member since 2020 · 168 posts · 50 votes
    10mo

    I’m leaning more towards showing bank statements as proof of income, what interest rates, down and monthly payments am I looking at.

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  • David Sun
    Member since 2023 · 27 posts · 6 votes
    9mo

    We can finance using either 1099 or 3/6/12 months bank statements. Neeless to say, 1099 is much easier without the mess from the bank statements.  We can use 90% of 1099 as your income.  Need min 1 year job history.

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    • Jimmy Rojas
      OP
      Member since 2020 · 168 posts · 50 votes
      9mo
      Quote from @David Sun:

      We can finance using either 1099 or 3/6/12 months bank statements. Neeless to say, 1099 is much easier without the mess from the bank statements.  We can use 90% of 1099 as your income.  Need min 1 year job history.


       What are your terms, interest .

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    • David Sun
      Member since 2023 · 27 posts · 6 votes
      9mo
      Quote from @Jimmy Rojas:
      Quote from @David Sun:

      We can finance using either 1099 or 3/6/12 months bank statements. Neeless to say, 1099 is much easier without the mess from the bank statements.  We can use 90% of 1099 as your income.  Need min 1 year job history.


       What are your terms, interest .


      Assume 235k purchase price, 15% down, primary residence, single family house, 1099 income, 30yr 6.875 APR 6.99. If you can put 20% down, rate is much better 30yr 6.5 APR 6.69%. No tax return required.

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    • David Sun
      Member since 2023 · 27 posts · 6 votes
      9mo
      Quote from @David Sun:
      Quote from @Jimmy Rojas:
      Quote from @David Sun:

      We can finance using either 1099 or 3/6/12 months bank statements. Neeless to say, 1099 is much easier without the mess from the bank statements.  We can use 90% of 1099 as your income.  Need min 1 year job history.


       What are your terms, interest .


      Assume 235k purchase price, 15% down, primary residence, single family house, 1099 income, 30yr 6.875 APR 6.99. If you can put 20% down, rate is much better 30yr 6.5 APR 6.69%. No tax return required.

      If you use 1099, usually we can use 90% of 1099 as income.  If you use 12 month bank statement, usually we use 50% of monthly deposit as income, and probably need to source large deposits. 

      We can use as little as 3 months bank statement, if you can put down 25%.

      If your credit score is better and the loan amount is higher, the rate can be lower, btw.

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  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    9mo

    You say “no debt,” but you obviously have a large debt to the IRS which changes your financials. Can you ballpark the IRS obligation (including taxes, interest and penalties and fines)? 

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  • Edgar U.
    Real Estate Agent · VA · Member since 2008 · 420 posts · 175 votes
    9mo

    You could always ask sellers if they are willing to do owner financing. The down payment and interest rates will need to be flexible. In this day and age, most sellers will consider this. Just make sure you get a great lawyer and a real estate agent that understand the owner financing aspect and presenting it to the owner.

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 533 votes
    9mo

    If you deposit the money into the bank you can potentially do a bank statement loan where you use bank statements to qualify. This is a non qualified (non QM) mortgage loan so it's going to be a different rate than a conventional loan. As far as what the rate will be some factors are:

    1. Credit score- the higher the better. 760+ generally gets best pricing for property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.

    2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 70% LTV loan.

    Besides the above factors, the rate specifically will depend on how your income is calculated off of your bank statements by the underwriter. 

    [email protected]818-770-0340
    Bright Skyline517 Reviews
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