Buying A Home
BooLilly25
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
18-Month Mortgage Waver for 1099?
Hi All,
So a little back story: DH and I tried to buy a home last October and were not able to because I am a 1099 employee and even though I was pre-approved as such, the bank said at the last minute that they could not approve our application until I was employed for at least two years, no exceptions. We contacted a separate mortgage broker as well, and she also said that there was no way anyone would give us a loan until the 2 year mark as our loan would not meet the requirements of the companies that the mortgages get sold to after closing.
Fast forward to a few months ago and DH happens to meet an amazing realtor at his work (we were not happy with our previous Realtor for unrelated reasons). The Realtor mentions that he has had people in this situation before and that there is a waiver to get approved for a mortgage at 18 months instead of waiting the full 24. The Realtor gave us the contact information for a Broker that he had worked with before and the Broker was very knowledgeable about the process and said that we seemed like great candidates and as soon as we file taxes, he will submit our waiver to get approved. We are hoping to do this in the next week.
My question is, has anyone ever been through this process before? How easy is it to get the waiver? And why did our previous bank not mention the possibility of obtaining a waiver?
I know that it would not be awful to wait until 24-months, but my job is very stable (I am only a 1099 employee because we are paid a salary every two weeks and then receive large bonuses upon project completion), and as our lease is up in May/June and have our down payment/e-fund and such in place, I would rather not renew.
I would appreciate input from anyone who has been through this process before.
Re: 18-Month Mortgage Waver for 1099?
Is it possible to finance on your DH's income alone?
More than that amount will likely make you house poor.
I don't really have advice for your specific situation. I receive a regular 1099 income, but that is in addition to my full-time job...and I've had the 1099 income for just barely longer than two years anyway.
But I did want to throw out it can be AMAZING what a real estate professional (realtor, broker, etc.) can accomplish when they are familiar with more unusual situations. For example, when I was looking for a house 4 years ago, there were a few opportunities that came along where I would need a regular home loan along with a construction loan. My loan officer at the time...who was very seasoned, worked in the field for many years...basically told me I could not get one with my credit and acted like it was a closed subject. I also got the impression construction loans weren't something he was especially familiar with.
I have recently begun looking for a second rental property and spoke to a different loan officer...but from the same bank...and she actually SUGGESTED to me that I get a construction loan if I find the right deal for a house that needs too much work for a conventional loan. My credit is slightly higher than it was four years ago, but not much. And perhaps banks are less strict now than they were back then, but still. I think it is really that she is more familiar with the construction loan process than he was.
P.S. He was a fantastic loan officer and really held my had through the process, as I was a first time homebuyer, but it's just a good example that even great mortgagers may not have all the tools in their wheelhouse.