I need some advice because I'm running into the same problem with working a commission-based job. When I apply for a mortgage, I cannot claim my commission as income until I have two years of commission as "proof" of what I earn.
Here's my story, I work in sales, which is largely commission-based, (I wouldn't have it any other way). I purchased a duplex last year, in which i had to show two years of commission to get approved. I waited patiently and saved, found a property, purchased it, and then made a job change. I am now ready to purchase another investment property, and although I have the cash down, I can only qualify for a mortgage based on my base-salary, which is maybe 1/4 of what I actually take home. This drastically lowers my purchasing power- especially for the northeast, and makes it extremely hard to be able to buy a property this year.
I have read the forums and know there are other options, maybe get a partner, hard-money etc, however I'm wondering if anyone else has personally run into this issue and what they did- because I don't feel I have enough experience for a hard-money loan or taking on a partner.
Any feedback would greatly help!
If you changed industries, I can see that as a problem, but if you still remained in the same field, I'm not sure why there'd be a problem as you already have 2+ years of sales experience in that field. I'd keep searching for lenders and if that doesn't work, you may have to look to hard money or a joint venture of some kind.
@Kate Gagnon I would need a little more information here to make an true judgement. My discussion with you would be around how much salary did you make at your last job and how much salary do you make at your new job? How long have you been at your new job? How much commission have you made at your new job? What did you do at your old job? What do you do at your new job? And things like that. Essentially, I would need to know more details. So I guess the questions I could ask here that wouldn't be so personal would be, have you spoken with several banks? What have the different banks told you specifically? Have you spoken with large banks and medium sized banks? Sometimes a large bank will have a stricter tolerance on this kind of thing than a smaller bank. Keep trying or if you want to ask more questions here then feel free. Thanks!
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