I've struck out on an ELOC for a house I own outright and on an FHA 203K, both because I'm self employed and don't show a lot of net income. Also, I've been in my business two years, but only one complete year, 2014, for tax returns.
The business showed a paper loss in 2013 because of accelerated depreciation, etc. but is black in 2014 and for 2015.
I'm renting an $1100 a month apartment and have been for years and all I want to do is get in a damned $500 a month house!
SO--would I have better luck with a stated income application, especially as I can show clear ownership of. $125,000 house which is rented in another state?
Is there such a thing as a stated income ELOC?
Welcome to the housing crisis of 2007. Stated income is only just starting to make a come-back with non-traditional lenders. It will be awhile before you can get a stated income HELOC (home equity line of credit) from a traditional (bank) institution. You also will not be able to find a hard-money lender to offer a loan on a primary residence.
So, you're probably stuck getting a 2nd mortgage heloc on your primary residence. Time to call mom, dad, uncles, aunts, etc. if you need some cash.
You'll have better luck finding hen's teeth.
Depreciation is added back in to the income for a mortgage, there might be another problem but ask those lenders if they added back the depreciation.
Saying a 203K, what's your skill level and experience in a fixer upper, 2 years isn't enough really. Look at a property that has no issues, for your own home, buying at retail won't kill you, live the price out of it. How much could you save each month to offset paying a premium?
HMLs won't lend on a consumer loan, for you to live in. You need to talk to consumer lenders or relatives.
HELOCs are short term loans, read the fine print, buying long term assets with short term financing can spell trouble. Good luck :)
Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com
Depends heavily on your credit score. Stated loans for Self Employed do exist now but they are only available in certain areas and fairly stringent. Call a mortgage broker in the area (not a bank) and see if they can help.
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