Please Need Advise

Ok so I make 80,000 a year working with my husband. This is our 2nd year filing taxes. Last year we claimed everything so we made nothing lol. This year I don't want to claim a lot so we can look like we make a lot to get a mortgage. ,My question now is I heard its hard to get a mortgage if your your own boss and you have a small daycare . Has anyone got a mortgage that only used this as your income? Was I hard. The money jump higher this year will they wonder y? We already have a mortgage in my husbands name but we want to sell this home and get a bigger home. Any ADVISE thank yiu .

[JoseyJo]

My hubby and I work together in our small daycare also. We make MUCH less than you (probably the part of the country though). We thought about moving a year ago or so and were unable to get a mortgage. We both have perfect credit and have worked at our daycare for 3 years (at that point). They said it was too much of a risk to give a loan to someone self employed during this economy, especially when they are employed out of their house and the house is changing. All of our parents were coming w/ us, it was only a couple of miles away and closer to most of them, but that didn't sway any mortgage companies!

Let us know if you ARE able to get a mortgage because I still would like to move if the situation may have changed!

[NeedaVaca]

I had a job out of the home for 10 years (not daycare) and could prove my income, showed profit/loss etc, they would not count my income...

[Familycare71]

It will be a red flag as far as audits and the IRS go I believe...
Yes I also believe the mortgage company is going to want more of a history.
Really the only way to see is apply and see what happens. Or call and talk to a mortgage person. They know what their under writters want to see. Our mortgage company did view my dc income as income (4 years ago- Wells Fargo).
Hope that helps some- good luck!!

[Clara]

After speaking with 3 mortgage companies I found one.

Wells Fargo was the only one found that would accept the Child Care income. I'm closing on a new home this month. I do have a nice down payment that may have made a difference. My down payment is 13% of price of the home plus I have the money to finish the walk-out basement which will increase the value of the home right away. If may have considered that.

Find a mortgage brokerage company, that is a company the helps find a mortgage for you and helps you get the best interest rate. It took working was a mortgage broker 6 months to help me get in the best position before going to Wells Fargo. The 3 that turned me down are ones I personally went to before finding the brokerage company.
One thing that the broker had me do was pay off some credit accounts and only pay the remanding down to 14% of their limits. Then keep them at that percentage for a few months until it showed on my credit check 3 months in a row.

Just a note - brokerage company are paid by the mortgage companies.

Good luck, let the forum know your progress.

[daycarediva]

My dh & I are both self employed. We are having a heck of a time getting mortgage to build a new home. We have excellent credit (upper 700's) and proof of income, AND a down payment and STILL got turned down.

[crunchymama]

I bought a home last nov. and it was a hassle finding a company to even consider us but Wells Fargo did. I had to have monthly, quarterly, and yearly profit/loss statements, letters of intent from clients who were keeping their kids with me after the move as well as those who had already contracted with me for future dates at the new location. I had to have letters from the state dhhr showing my certification. I also had to write a letter of explanation about how I run my business, my rates, how many children in care, max potential income from child care, how the move would affect my income, etc.

[Lyss]

DH and I got pre-approved recently BUT they would not count any of my income so basically DH got approved The problem though it that with my income the we can afford a home much more than he was approved for (like we could afford a 200k home but they only approved DH's income for 150k) which means the houses in our area that fit the needs of the DC (larger, family & living room set ups) are no longer in our price range unless we move to a less desirable area of town (where I'd loose all my clients and have to lower my rates)

we have a large down payment too...

[Familycare71]

Originally Posted by crunchymama

I bought a home last nov. and it was a hassle finding a company to even consider us but Wells Fargo did. I had to have monthly, quarterly, and yearly profit/loss statements, letters of intent from clients who were keeping their kids with me after the move as well as those who had already contracted with me for future dates at the new location. I had to have letters from the state dhhr showing my certification. I also had to write a letter of explanation about how I run my business, my rates, how many children in care, max potential income from child care, how the move would affect my income, etc.

I too have Wells Fargo... I have never had to provide anything beyond tax papers including schedule c. My husband does have a typical income.

[Scout]

oh oh....this is worrisome to me! I am the only one on our mortgage and wanted to refinance next year! Anyone know if this would cover refi's too? It sounds like all of these are for when you are moving from one home to another.

[TomCopeland]

Getting a home loan has been difficult for all people for a number of years. Unfortunately, self employed people face additional barriers. I've written an article about how the bank should not be looking at the bottom line on your Schedule C, because a number of expenses don't represent cash payments each year.

In addition, it's probably a good idea to prepare a cash flow statement showing your income and expenses on a monthly basis.

When I applied for a home improvement loan several years ago, I had about 2 years of strictly self employment income and my wife was employed. They wouldn't look at my income!

Here's my article:http://www.tomcopelandblog.com/2011/...-now-what.html