Have been trying to refi without success. I’m an ER doc, have stellar credit. Changed jobs 6 months ago and am now an independent contractor,can’t get a mortgage even though my income easily covers it and I have people calling me every day trying to give me a job. Don’t get it. I’m not trying to borrow MORE money, just change who the check goes to and save on interest. They went from giving a mortgage to anyone with a pulse to not wanting to give anyone a mortgage.
It's very tough to get a loan when you're self-employed.
A loan officer told me the problem is the reversion to a policy termed “full docs” that staff is unfamiliar with and therefore awkwardly outline in requested submissions.
They are all terrified of fed ratings.
see my post above on joining PFCU
For background; I do this for a living for one of the biggest lenders.
You are suddenly self employed; guidelines generally want a 2 year history.
Our banks private banking area might be able to do it depending on your asset base.
Your situation is one that drives us crazy as loan officers. You would be considered a a top flight borrower by us; but the guidelines don't have the flexibility they used to.
Underwriters are all running scared. Every file is audited after closing to make sure every letter of every bank statement is documented correctly.
The investors (Fannie Mae and Freddie Mac who everyones loans go to); look for any loophole if a loan goes bad in the future. They will make the lender buy the loan back if any small piece of info is missing from application.
It kind of stinks to be doing my job at times right now!
It is because you are an independant contractor. My husband was making nice six figures in the early eighties when credit was tight and he couldnt buy or finance eaither because of IC status. in the 90’s banks loved our IC status because we had many streams of income.