West New York, NJ · Member since 2017 · 2 posts · 0 votes
I’m interested in buying a property, minimum of a 2-family to live in and rent. What would be the best way to obtain a mortgage if I am self-employed/independent contractor??
I’m interested in buying a property, minimum of a 2-family to live in and rent. What would be the best way to obtain a mortgage if I am self-employed/independent contractor??
Make sure you are honest & accurate when you do your taxes, and you won't have a problem, assuming of course your target price point is reasonable given your income level and ability to make payments.
You and I have never spoken, so this isn't directed at you, but when someone says "I'm self employed so I don't 'show' income" what they are saying is "I commit tax fraud." There is no provision of the tax code that allows a taxpayer to not "show" income in order to avoid paying taxes, and indeed the tax code contains like 10 different options for us self employed persons to "show" it however we want... C corp, S corp, LLC, sole prop, etc etc. Many many choices, the only one disallowed is "lie to avoid paying taxes."
Fannie doesn't like tax fraud b/c an IRS lien automatically takes precedence over the mortgage. Suddenly the Fannie 1st position mortgage is in 2nd position, the HELOC is in 3rd position, etc.
West New York, NJ · Member since 2017 · 2 posts · 0 votes
7y
@Chris Mason thank you for the response. My mother who is a nanny is the self-employed person. I currently drive as an Uber driver which is the “independent contractor” part. No tax fraud committed and won’t be in the future. She has been claiming higher and higher income so she’s paid higher taxes in order to be able to be approved for some type of mortgage. What I’m not sure about is which loan is the wisest to apply for when you’re in that situation.