OfflineSelf Employed borrowers will need a P&L and a Balance Sheet if more than a calendar quarter has elapsed since the date of the most recent calendar or fiscal-year end tax return was filed by the borrower – with no exceptions.
Additionally, If the income used to qualify the self-employed borrower exceeds a two-year average, you will need an audited P&L or a signed quarterly tax return obtained from IRS. (required!)
So as you can see, after April 1st things are tightening up again - so if you fit the profile and are closing after 4/1/12 you need to have the lender re-review everything so things don't stop at the closing table.
__________________
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Can you elaborate or show me where to find more info. Tammy
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
it's been more difficult for self-employed people to get any loan... it may be easier to do an owner finance, and then refinance after a year or two?
Can you share the link to the article?
thanks for the info!
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
I too am a little puzzled. Not as versed as you are Bill. Need some clarification thanks.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
there isn't a lot of information out on this yet even though it begins pretty soon. The bottom line is that self employed people will really have to go overboard to document income levels through the use of financial statements, and in some cases, audited financial statements. As often the case in life, the pendulum swings too far in opposite directions.
BTW, I can't give the link as it is behind a RE investment proprietary website where you need a paid account.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
What Bill is saying is that if it is an FHA loan and the borrower is self-employed (as REIs are), they require proof of your income showing your profit and loss statement (not just stating your income) if it has been more than 3 months since the last tax return was filed. Hope this helps.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.