70k Cash, Terrible Tax Returns Great credit. What are my Options?

[Mirjam Kao]

Hi!

My husband and I have been self employed, living abroad, but we've been looking to come back to the states and purchase our first property.  Being self employed, despite having decent income our tax returns show very Low AGI due to deductions, namely a large $102,000/year foreign income exclusion.  My husbands credit is great (low 800's), but I think not showing the kind of income that lenders are looking for heavily limits us.  Any creative solutions anyone would suggest??  Would a co-signer be sufficient despite the low AGI (income) problem?  How about a co-investor?  If we a friend to co-invest who does have a good job or a decent ability to land a loan and we pay the down payment for instance, is this something that could work or would be suggested?  If we are able to get a loan this way (co-signer or co-investor), will this help us later down the line to secure a future 2nd loan?  Any dangers or downsides, or perhaps any other suggestions??  Thanks so much!! 🙏❤️❤️

[Dave Spooner]

@Mirjam Kao I'm not as familiar with investing state-side as an expat, but as long as your co-signer brings enough on the positive side of the debt-to-income ratio, I would assume you'd be able to proceed.

I'd reach out to a local bank or credit union in the area you're looking to purchase. They should be able to walk you through it pretty thoroughly. Good luck!