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fha loan mortgage question please help?

I want to buy a condo thats 250 k I have excellent credit and no debt but low income. I have 50 k 20k which i want in a car accident settlement and the rest which i saved up . I know lenders want to see proof of every penny .will showing the 20 k from the car accidnet settlement be enough proof?

also i have a low income but enough to afford this house. is it mandatory to show the last 2 years income taxes i only had an income for a year. I own a small kiosk in the mall and i make around

60 k a year i just paid the quarterly taxes so far

please help I feel like i will never get approved for a mortgage

6 Answers

  • 1 decade ago
    Favorite Answer

    Normally a lender would want the minimum of 2 years of verified income and that is done by federal income taxes, pay stubs and other third party computer generated proof.

    In your case the net of your income is not always used as their are certain items you pay that are added back into your income side based on your federal income taxes you file. Things such as Social security are added back and a few other items that your processor and underwriter would know how to do and will do so.

    The biggest obstacle as I see it is your inability to prove 2 years of employment.

    As long as you can prove the 20K settlement that would be good, the underwriter would require some type of letter or other proof that would be in the form of a copied check from the insurance company issued to you. A letter sent to you from the insurance company indicating the amount you would receive plus a copy of the check might be required.

    You might try a FHA mortgage, since they are not as strict as a conventional lender with documentation and could use other documentation to prove certain things that a conventional lender would want.

    You would be able to locate a local FHA lender in your telephone book or google FHA lenders followed by your city and or state.

    I hope this has been of some benefit to you, good luck.

    "FIGHT ON"

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  • 1 decade ago

    If you are self employed ( and it sounds as if you are if you are running a kiosk in the mall ) you WILL need 2 years of tax returns to show a lender.

    What you have to remember though, when you are self employed, is that the lender does NOT take your gross income from your business. It will take what you NET. So if you make 60k a year, but show on your taxes you only take home 20k (because of deductions) you will be approved for what a salary of 20k a year will buy you, not 60k. That is why you have to plan ahead if you are self employed and want to get a mortgage. You have to take 2 years to not take so many deductions (but pay more taxes) so that your income will be higher and you will be able to qualify for more.

    Are you saying you have a 50k down payment or a 70k one? If your net income was 60k a year, you could afford up to 180k mortgage. So, if you were buying a condo for 250k and put 70k down, you may be able to do it.

    Go talk to a lender and see what they would require of you. I am sure though, that they will tell you to come back after you have 2 years of verifiable income from your kiosk business.

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  • 1 decade ago

    Sorry but you must have 2 full years tax returns. We use your adjusted gross income after expenses to qualify you. We document everything... but as long as you have proof of the settlement you should be okay there. I think you are probably a year away from being okay (due to only 1 years tax returns on self employment). Keep in mind we deduct all expenses off your income though. Make sure you make at least the same amount on taxes this year as last year- we don't want to see a decline in income. Keep your debt low & you should qualify if your gross income is really 60k (after expenses) & keep credit perfect. Also keep copies of cancelled rent checks- we want to see 2 years clean proven rental history & minimum 620 score on credit, but the higher the better. Good luck!

    Source(s): 24 years mortgage lender.
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  • Anonymous
    1 decade ago

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  • 1 decade ago

    *You should try to get loan from the source who gives loan without income proof in which case your investment/margin would be 50% of the total cost.

    **Such option must be adopted if & only if you really have physical income actually coming in your pocket sufficient to service the loan with interest thereon otherwise your own money may get wasted in case of default.

    ***One must spend/invest within his limits.

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  • 1 decade ago

    Hi, My name is Carmen Jones. I have been refering people whom are desperately in need of loan to Mr Ben Rume. The reason is because i have been rescued by him sometime ago when my account was in the hole and i almost killed myself when everybody i talked to turned me down. I needed money to sort out my bills and consolidate my debt, i got scammed twice until i met him. He gave me a loan of US$45,000 and i recieved it in 2 working days after i agreed to his loan terms and condition. My dear, i want you to contact him ( if you really need the loan, tell him i Carmen Jones referred you to him that he gave me loan sometime ago which i am still grateful to him. Goodluck

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