HELP-20 MONTHS SELF EMPLOYED FROM W-2 / FANNIE MAE

Author

Previous Topic | Next Topic

hoangad

2929 Posts

Posted - 05/08/2008 : 09:22:54 AM

I have a borrower who has been self employed for 20 months coming from a w-2 job.
Will fannie/mae accept this loan?
Approve/Eligible full doc tax returns.

help please.

thanks!

cearle1

125 Posts

Posted - 05/08/2008 : 09:27:20 AM

Try suntrust they go by fannie mae guidance which allows for that as long as there is at least 6 months self-employment income on the 2007 tax return. I would printout the sellers guide showing the guidance on income to support your case.

clarenceworley

4186 Posts

Posted - 05/08/2008 : 09:28:33 AM

Maybe if he/she is in the same line of work...I would review it with a good AE who could talk to an underwriter. What does the feedback say regarding self-employment?

hoangad

2929 Posts

Posted - 05/08/2008 : 09:36:01 AM

Joe Blow's self-employed income must be supported by two years' signed personal tax returns if it will be used for qualifying purposes. Provide all tax schedules, and written permission to request tax returns from the IRS. A minimum of 6 months self-employment income must be reported on the latest tax returns. Refer to Chapter Two of the Guide to Underwriting with Desktop Underwriter for additional information.

hoangad

2929 Posts

Posted - 05/08/2008 : 09:37:57 AM

so 2 years tax returns is sufficient yes?

cearle1

125 Posts

Posted - 05/08/2008 : 09:44:04 AM

It depends on the lender, but it should be acceptable providing they are in the same line of work. They are also going to want a signed P & L for this year and a balance sheet for this year if the business is a S corp, partnership, or corp. Its really up to the lender and UW you submit it to...

hoangad

2929 Posts

Posted - 05/08/2008 : 09:55:41 AM

thanks for your input. just wanted to know if this loan was possible. i'll ask the AEs now.
i appreciate your help very much.
have a good day.

williamspeaking

4058 Posts

Posted - 05/08/2008 : 10:00:49 AM

You'll probably only be able to go portfolio without 2 years, regardless of line of work.

cearle1

125 Posts

Posted - 05/08/2008 : 10:24:26 AM

Why is that? If fannie's selling guide clearly states that situation's like this are acceptable under certain conditions? Obviously, there needs to be compensating factors, but if fannie's selling guide details this scenario and explains its guidance, I don't understand why lenders are so adamant about this fact but will do some of the other stated loans they are still approving and closing.

Previous Topic | Next Topic