Getting a mortgage without current year income

[gzz]

So talking to brokers, the answer is with many years of income tax returns plus a quick current year estimate you can still get the very best rates (assuming you qualify on debt ratios, credit score, down-payment, etc.).

[La Jolla Renter]

I think good old Dodd Frank is going to make it tough. Small business owners always get fvcked, nothing new. I think you are going to get tripped up on your Diti and needing 2 years tax returns to verify your income. 2 month paystub loans are long gone.

[spdrun]

Assuming the property is truly an investment property and the OP is willing to put 30-40% down, they should be able to work with a portfolio lender. Dodd-Frank mainly applies to owner-occupied property.

[La Jolla Renter]

I think the super low rates are had by claiming primary residence or second home. If you go directly through Wells Fargo, they let you have 4 “primary residence” loans. On the 5th property they will make you get an investment property loan which is a higher rate.

[spdrun]

Of course, if you intend to rent the home, you can’t legally claim it as a primary or second.

We’re talking about 0.50% to 1% more, not the end of the world.

[FlyerInHi]

[quote=spdrun]Of course, if you intend to rent the home, you can’t legally claim it as a primary or second.

We’re talking about 0.50% to 1% more, not the end of the world.[/quote]

Some people are just entitled.

[La Jolla Renter]

I’m not sure what the exact rules are, but could you “intend” to live there and then change your mind. Maybe even start to move your “stuff” there and then change your mind? Or “intend” it to be a second home and change your mind. Is there a law that says you have to owner occupy the property for a set time?

(I assume everyone realizes this discussion is for obtaining a mortgage and has nothing to do with claiming it as a rental property on your taxes.)

[Author]

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