Self employment and approval!

4 Replies

So I have worked my tush off working on my credit it's not the best now but good enough. Now where my problem lies is I am just starting to work for myself. I had some time in 2019 that I worked for myself and I started again this April 2020. I do not have someone to co-sign. I know that there are other financing option but utilizing my VA loan option seems to be the best route. I feel stuck because I want to continue with being self employed but don't want to wait 2 years.

@David M.

Thanks David! I felt as though that’s what the answer was going to be. Looks like I’m either going to have to make time for a w-2 job for sometime, wait, or look more into finding seller financing options.

@Bethany Virago

Come to think of it... how well does your multi family cash flow? It's usually a stretch but your southwest markets are "strange" to me... Lenders user 75% of your rent schedule (not 75% of your profit/loss) when calc your dti. They are supposed to take the depreciation "out" of the calcs since it's a non-cash deduction. Also, some lenders will allow expected rental income to count as well. Basically, you can be buying another property and use the expected rent to help. Not all lenders do that. Mine done.

So, if you are generating a fair amount of rental

Income and haven’t had many expenses, you might be able to use that to help justify a loan.

Direct msg me if you want to find a time to chat about this if my quick typing doesn’t make sense.

Good luck