For 30 years I was self employed as a general contractor. 5 yeas ago a long term client asked me to become an employee for an HOA that they managed as a construction coordinator/ project manager. That worked out very well but about 6 months ago the same client asked me to do some side projects for them at very lucrative pay. I convinced my HOA employer to to retain my services as a general contractor but at reduced hours for the same gross pay therefore raising my income. That was in February and acting again as a self employed general contractor my income is increased by 25% which of course is great but now I want to get a loan to purchase a home for myself. Since I am self employed again my favorite lender that I have used many times before is telling me she doubts that I can get a loan since I changed my status. I have been in the same industry for 34 years and have great credit. Now since I voluntarily changed my status I cannot get a loan---say it ain't so.
One other issue is that I own quite a few rentals all of which I bought 8-10 years ago and they all have positive cash-flow. This she is telling me hurts as well. Did I screw myself?
And yes I know I can get creative but has lending become this strict?
@Martin Scherer Yes, lending is that strict. It has actually loosened up recently. How many properties do you own? If you have more than 4, a lot of lenders won't do it. Some will go up to 10 financed proerties through fannie mae. Are you still getting a W-2 and paystubs through the HOA that you work for?
@Martin Scherer I'm confused. You said you were working for the HOA as an employee but then you said that you were self employed. What I think you're saying is that you are an employee of the HOA but working as an independent contractor for the side jobs. Do you need the self employed income to qualify for a loan? If not, just leave it off the 1003 application and only show your W2 income.
I quit the job for the HOA and went back to being self employed. They are still using me as their project manager but I am not w2 employee any longer and I am free to do jobs for the property management company. I have been doing work in more than 100 HOA's over the last 34 years for a couple of management companies. Those projects generally last from a day to several weeks. They also use me as a consultant for their HOA's when an HOA has a construction defect issue.
The W2 job was keeping me from working anywhere else as it took all my time. Now I give them a certain number of hours weekly to still manage this summers major construction project but I am free to come and go as I choose on my own schedule.
So the last pay stub was February.
Good credit... long work history... self employed since Feb. But this is your personal residence, so I don't think the rentals will count against you... unless there are DTI issues that are in the way. Have you considered another loan broker? Perhaps a commercial lender with terms that you could live with?
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Thanks all of you information.
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