The situation
A referred self-employed borrower initially had tax return income that was not enough for the intended conventional loan.
What Sarah did
The purchase
Sarah used a bank statement program for the home purchase, with a 10% down payment.
The refinance
Approximately one year later, she helped refinance the loan into conventional financing using one year of tax returns, because the borrower had operated the business for more than five years.
The next generation
Approximately another year later, the borrower's son was ready to buy a home, and Sarah reported using a 1099-based qualification method to help him.
The result
Sarah described a successful first purchase, a later conventional refinance and help with the son's purchase. Loan terms, savings and exact closing dates were not provided.
Facing something similar?
A denial, a shaky preapproval or a tricky income question is a reason to get a second look, ideally before you sign a contract. Send Sarah your scenario.
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