Home Loans and Support

FHA self-employed with cosigner?

Discussion in 'FHA Loans, Requirements & Rates' started by jennylela, Sep 3, 2011.

  1. jennylela

    jennylela LoanSafe Member

    My husband is self-employed. He does not yet have 2 years of 1099s. We both have Good credit scores. If we got a co-signer (my father), do you know if would we be able to qualify for an FHA loan without waiting for the 2 years?

    Do you have any idea of the chances of getting turned down even after the two years of verified income and having to go with a cosigner anyway? The reason I ask is that we won't be able to write anything off this year on taxes in order to show higher income, and will have to fork over $18,000+ for taxes. If we are still going to have to go the cosigner route anyway, we'd rather save that $$$

    Thanks for any help!

    jenny
  2. TomEason

    TomEason LoanSafe Guide Staff Member

    jenny

    Thanks for your post and welcome to Loansafe.

    I recommend you consult with a good loan broker who does FHA loans. A broker who is experienced with FHA loans will likely know the answer.

    If it were me, I wouldn't consider paying over $18k just to look good on a loan application and qualify for the loan.

    As far as your tax return showing Schedule C profit, you might consider following in the footsteps of Turbotax Timmy Geithner, our illustrious Treas Sec, by using some creative license, LOL.
  3. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi jennylela,


    Welcome to the forum and thank you for joining.........

    In addition to the information Tom provided, you can also ask a question about FHA loans by sending it to HUD here:

    answers@hud.gov

    It is going to be difficult to get around the two years as anything less for a self employed borrower is not considered effective income. For less than two years there are still requirements to show previous years of successful employment.

    FHA income guidelines to qualify for a home loan
  4. jennylela

    jennylela LoanSafe Member

    Thank you both for your responses. We are going to meet with a loan officer in the next week or two see if we can save at least some of the tax money...
  5. Cat Damiano

    Cat Damiano Mortgage Wars

    Good Luck! Please keep us posted on what you are able to find out.

Share This Page

COMPANY LINKS

TESTIMONIALS

"Hello Moe, I just wanted to tell you, your website has saved my life (literally), I stumbled on your site in the middle of losing my home, I was able to network with people going through the same thing as I am. I didn't feel alone anymore, I have tried to give back and counsel those that haven't walked in my shoes yet. We hear so much about what is wrong with America, I just wanted you to know, you are whats "right" with America."

Nina Mitchell
Loansafe & MoeSeo Inc. © 2014 | LoanSafe.org is not a bank, lender, mortgage broker, law firm or affiliated with the US Government. Privacy Policy