The Lending Situation Today
Rates are getting better but the guidelines are getting tougher. While we still have some great rates out there anywhere from 5.876% to 6.5% depending on your credit score, the days of stated income are gone. A smart CPA or business man would say that a self-employed person should write off as much as possible. That make great business sense. However, the dilema is that if you write off all your income then you don't show enough residual income to support yourself. Therefore, you can't get a loan. So we are currently back to the old Fannie Mae guidelines of 2 years employment history in the same line of work without any breaks. 2 years of tax returns and 2 months pay stubs to prove your income. This makes it more difficult for people who are self-employed to get a loan. So when the great deals are out there, which is now, you need to be prepared to buy. Paint the pretty picture. Contact me if you want some ideas on how to get approved for a mortgage loan. Because it isn't easy right now.