School me on a mortgage loan for us 1099 guys.

[CodyWitt]

Basic rundown:

I left my company job nearly a year ago now to start my own business as an independent contractor. (Construction)

Looking like I will NET around 100k my first year (business is crazy busy in my area)

Assets: 25 acres and my company.
Debt: $1,000 monthly rent and phone bill. Everything else I paid cash for.
Credit score: 750ish

I want to build a house on the land I own and was wondering if it is even possible to do this through a lender with my lack of tax returns. Nothing crazy big. $150k loan would be plenty for me. I would think that using my land as collateral would be enough for a bank to loan???

Anyone have experience with this? Maybe there is a special loan designed for guys like me? Maybe a No doc loan? Any help is appreciated

[bphillips]

Was easy for me but I had a relationship with home town bank. Heck they would send money contractors needed as I texted them while we were building. If you have a small town bank you trust I’d go that way and they can explain your options

[Radar]

You might want to talk to a CPA before you do anything.

[CodyWitt]

Was easy for me but I had a relationship with home town bank. Heck they would send money contractors needed as I texted them while we were building. If you have a small town bank you trust I’d go that way and they can explain your options

That’s the kind of bank I need. Was it privately owned or a farm bureau?

[Johnny Dangerr]

Every loan [dance] is different. When we bought this house it was like a 10 minute phone call. Paid it off a couple of months back.

You should be fine..............

[CodyWitt]

Every loan [dance] is different. When we bought this house it was like a 10 minute phone call. Paid it off a couple of months back.

You should be fine..............

Every bank I talked to wouldn’t give me time of day without 2 years of returns.... even with the land and a sizable down payment. Guess I’m using the wrong banks.

[4R Daddy]

School me on a mortgage loan for us 1099 guys.

Basic rundown:



I left my company job nearly a year ago now to start my own business as an independent contractor. (Construction)



Looking like I will NET around 100k my first year (business is crazy busy in my area)



Assets: 25 acres and my company.

Debt: $1,000 monthly rent and phone bill. Everything else I paid cash for.

Credit score: 750ish



I want to build a house on the land I own and was wondering if it is even possible to do this through a lender with my lack of tax returns. Nothing crazy big. $150k loan would be plenty for me. I would think that using my land as collateral would be enough for a bank to loan???



Anyone have experience with this? Maybe there is a special loan designed for guys like me? Maybe a No doc loan? Any help is appreciated

PM sent


Sent from my iPhone using Tapatalk

[bphillips]

That’s the kind of bank I need. Was it privately owned or a farm bureau?

Private

[clay4626]

if you make a 100k a year net being self employed you should be able to get most any kind of loan With a 1099trail you can prove your income to any loan co

[Radar]

if you make a 100k a year net being self employed you should be able to get most any kind of loan With a 1099trail you can prove your income to any loan co

Yes, but banks are a different animal. I went thru this 17 years ago and the banker man pizzed me off. I went to a real good CPA and learned why the banker man said no. Had nothing to do with credit score or net profit.

[Plain Lucky]

You might want to talk to a CPA before you do anything.

X 2

You need a CPA anyway and he/she will be able to put you in contact with the kind of bank you are needing. Congrats on your new business success. The bad news is that you are about to be hit hard by the tax man. The good news is a good CPA can help. If possible, it would be better to meet with one this week so that they can possibly advise you of anything you might want to consider doing before year end.

[tps7742]

If I remember correctly the average loan company needs two years of an established income if self employed to qualify for a home. That being said the right hometown bank may be the best route.

[eradicator]

Yes, but banks are a different animal. I went thru this 17 years ago and the banker man pizzed me off. I went to a real good CPA and learned why the banker man said no. Had nothing to do with credit score or net profit.

What did it have to do with?

I've been self employed my whole life and never had an issue. I'm just curious as to what to look out for in the future if ya'll are having issues.....

[Radar]

X 2

You need a CPA anyway and he/she will be able to put you in contact with the kind of bank you are needing. Congrats on your new business success. The bad news is that you are about to be hit hard by the tax man. The good news is a good CPA can help. If possible, it would be better to meet with one this week so that they can possibly advise you of anything you might want to consider doing before year end.

You Dang Skippy, tax man is da devil.

My worst effective tax rate was 33% one time and that aint counting 12% self employment tax. I liked to died when I wrote that check.
My CPA laughed and said I told you to pay more quarterly tax, but you know everything so here you are. I was balling,Lol.

[M16]

It's not that the banks don't want to make the loan. The problem comes in when the banking examiners show up. Government regulation really screws up deals like yours.