I DIDN’T GET APPROVED TO BUY MY 2ND PROPERTY.

[Erika Caba]

Hello everyone,

I’m new to this website and I want to share with you something that happened to me back in May. As of now, I owned a duplex, and rent them. I get a good cash flow from them every month. On May I decided I wanted to buy a single home, but at the end when closing date was near the bank notified me I didn’t qualify to get a conventional loan since I’m an independent contractor since Feb 2019, they thought I was an employee. I got denied. Is there other way to get a loan to buy my next property?

Thank you for your help.

[Will Fraser]

Hi Erika!  

Sorry to hear about the frustrating debacle on the second property!  This is 100% something that the lender should have known, and should have informed you of far before the week of closing because they should have seen that on your paystubs/lack thereof. 

If you are self-employed and have been for the past 2 years you can have a loan based on your past two tax returns.  If you are newly self-employed then you're best bet is probably a commercial loan, which is typically amortized over 15 or 20 years.  They are viariable rate loans, so not as stable or as low rate-wise, but still a good option for many.

Will