Help - self employeed -hit snag with down payment for a home. - Posted by Angelina

Posted by Doug Jones on November 30, 1999 at 20:15:56:

I am also in the same boat with the self employed part.
Last year bought a house and ended up giving the lady $10,000 down and $110,000 for a small lake home on an acre surrounded by $150,000 and up homes. We updated many things ourselves and “refinanced” after making payments for a year. It appraised for $165,000.
we borrowed 80% or $132,000.
This year we have added on to the house and it is worth around $210,000 now.
We sold 2 other houses to fund the addition but only put $10,000 down in the beginning.
Alot of mortgage companies will consider a lease option or a contract, as ownership after a year of good payments. That is how you can “refinance”.

Good luck

Help - self employeed -hit snag with down payment for a home. - Posted by Angelina

Posted by Angelina on November 30, 1999 at 12:35:08:

My husband and I would like to buy a home (currently renting - and wasting $$$$). Both of us are self employeed. We generate excellent incomes. However, tax time provides us with the ability to have a lot of write offs - which have in turn hurt us when the bank looks at our “business profits”. We have been told that we need 20% down because we are self employeed. In Mass. especially our town and surrounding towns 20% down would mean 40K-50K. This isn’t going to happen soon. We need to stay in the area because of our business and our son’s education. Our credit is good and we have just paid off all bills. We can get together 5%-10% down. Does anyone know of an alternative (no relative to borrow down payment from) that can get us into a home for 5%-10% down? We have found land and want to build a modular home on it. If we could do this our home when complete would have (on the low side) 75K-100K equity when compared with the comprable homes in the area. Any suggestions would be greatly appreciated!