Hi All! I’ve been self-employed as a freelance programmer. I receive 1099’s, but my tax returns really don’t reflect my true earnings because of the deductions. Are there mortgage options for me or do I need to get a job earning W-2 income? I am having a hard time finding a lender that can deal with my kind of work.
Most lenders will follow Fannie/Freddie, FHA, VA guidelines that do require 2 years worth of tax returns to show consistent income. And that income must be enough to support your monthly obligations. So if you are writing off a lot of expenses and showing next to zero of net income, you will need to find a lender that works with alternative income documentation. Many times they are called Bank Statement programs for self-employed people, which will allow you to provide 12-24 months bank statements showing income in a personal or business account – without needing to provide tax returns. These are definitely outside the norm, but those programs are indeed out there.