I'm Self Employed, Can I Get a Mortgage? [mortgageapply.blogspot.com]
Question by MrAmazing81: Can I add 150k to my mortgage to upgrade? lets say i wanted to buy a house (in New York) for 300k that is considered a "starter house" and wanted to put 150k worth of upgrades into it. Could I just get 450k from the bank as the INITIAL loan for my mortgage or would I need to get a 300k mortgage and then find another way to put the 150k of upgrades into it? Best answer for Can I add 150k to my mortgage to upgrade?:
Answer by falsi fiable
No, that is a separate home equity line of credit. You need to earn at least $ 100,000 pre-tax to afford that house. You would need to earn another $ 30k per year to get the credit line.
Answer by Realtyyoudefine
If you can find a bank that will loan you 150% of the value of the property, be sure to let us know on this forum. Not happening, my friend.
Answer by liveinmd
The only loan program that allows for rehab money is the FHA 203k. There are strict loan limits so check with an FHA lender before putting a contract on a house.
Answer by ∞infiniti∞
No, you can't. Upside down mortgages are a thing of the past. You can't get 100% financing anymore.
Answer by My Take on It
No, you could not You would need equity in the property in order to get that other 150k to make upgrades.
I would like advice about financing versus buying my new home without a mortgage. I anticipate that I will net $ 250000 from my current home and the house I want to purchase is $ 350000. Should I get a mortgage and keep my investments since interest ... Mortgage in retirement can make sense
You may not believe it, but even during these credit crunch days, finding a mortgage if you happen to be self employed is not as difficult as it used to be. Previously a lender would want to see regular income backed up by by employment. Nowadays, whilst there are lenders offering in mortgages for the self employed, it's probably the case that most lenders will nowadays deal with self employed people. In order to find this out, I'd recommend that you find an independent mortgage adviser.
As I have already alluded to, lenders are cautious creatures especially at the moment and don't always appreciate the ins and outs of different types of business. But gradually this is changing, so do your homework and shop around, or get your mortgage adviser to shop around. It used to be the case that if you're self employed and you required a mortgage, the lender would need proof of your income, you would need to show three years audited accounts or if you haven't been in business for long enough the lender would accept a correspondence from your accountant.
If you are unable to show these three years of accounts, you may've had to pay a larger deposit, or go down the self certification route.
Self certification mortgages provide a solution for people who cannot guarantee or otherwise suitably demonstrate their full income. Oftentimes associated with the self employed, self certification mortgages are actually available to people from all walks of life, whatever their employment status.A self-certification mortgage is just like a 'normal' mortgage except that the proof of income that is required is less onerous. What's required instead is a signed declaration of your income and of your ability to afford the mortgage.
In going down this route however, please remember that YOUR HOME MAY BE REPOSSESSED IF YOU CANNOT KEEP UP REPAYMENTS ON ANY LOANS SECURED AGAINST IT. Standard stuff it may be, but you don't want to go into this with your eyes closed. Defaulting on a mortgage payment is not to be recommended. More I'm Self Employed, Can I Get a Mortgage? Articles
