Rental Property Investor · Temple, TX · Member since 2019 · 7 posts · 3 votes
Hello all,
I’m a overseas contractor who receives a 1099 but want to dice into real estate. I was recently told by a co worker that in order to obtain a mortgage a 1099 contractor has to have 2 years of employment before any bank will consider me for a mortgage loan. Does anyone have any experience with this? Do I have to wait another year before purchasing my first rental? I currently have a mortgage for my personal home, not sure if that’s relavent or not.
If I do have to hold off for another year, will private lenders be my only option?
Thank you for your help and advice. If I don’t respond quickly it’s because I’m on a totally different time zone and might be asleep.
Rental Property Investor · Indianapolis, IN · Member since 2018 · 189 posts · 141 votes
7y
@Christopher Cano when I bought my first personal house I was working at a commission based job. They bank also told me that I had to wait till I was there for 2 yrs, so I'm assuming 1099 job would be the same. They just want to know that your work is kinda steady. Sorry man your going to have to get creative.
Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
7y
For conventional loans (Fannie Mae and Freddie Mac) You must have 2 years worth of tax returns showing the income, so theoretically, it can be longer than 2 years depending?
The alternative to that is known as a Non-QM or Portfolio type loan. You can do those as full doc with less than 2 years self employment. You can also go with the Bank Statements program or the Investor Cashflow program, neither one of those will require proof of self employment for 24 months? Yes the rates are a couple of points higher than a Fannie Mae loan, but if you have an opportunity in front of you, then this will be the way to go until you have the 2 years under your belt?