But I Don't Want A Job!! - Posted by Tim

Posted by Stew(NE) on November 18, 2001 at 22:23:51:

I got transfered to Omaha and I was in the Air Force (Just an NCO, not a pilot) and my wife was a nurse. I had the same thing happen to us they didn’t want to count my wife’s income until she got a job. However, we had a creative realtor (Her husband was the Human resource director at Mutual of Omaha), she asked my wife what other skills do you have(The nursing market was flooded at the time), luckily my wife could type 80 to 90 words per minute (scary, isn’t it), so she got hired as a transcriptionist at Mutual and the realtor closed the deal and got her commission. She deserved it.

But I Don’t Want A Job!! - Posted by Tim

Posted by Tim on November 16, 2001 at 17:51:18:


I wanted to know if anyone here has experience in a situation like this. Right now, I live in AZ, and am planning to move back to Maine in Jan. or Feb. at the latest. Our house is on the market right now. I figure I can sell the house, and the net profits will pay off most of our debt and put a good down payment on our next house in Maine. I want to move back and start seriously investing in RE. Of course when we move, that means quitting my current full time job and looking for another full time job back there (I haven’t found one yet). But I also have a part time CAD drafting business I am running, and I could make it full time when we go back there.

My question is one of qualifying for a mortgage. If I quit my current job, move back there, and set up my CAD business, how would lender look at that? Does a consulting business equate to a job? I’ve been in my industry for over 6 years now, so I know it pretty well. Would I be able to convince a lender to lend me money? My debt situation would be much better, but the job situation would be not so good.

I don’t plan on having this business forever (it is in the S quadrant), I plan on starting to buy peoperties. This is just an income until passive income gets bigger.

If anybody has experience getting qualified for a mortgage as a self employed person, I would appreciate your advice. Thank you very much.


PS - Incidentally, if you need a CAD consultant for any home improvement projects you may have, my website is www.cadjockey.com. (had to get the plug in)

Re: But I Don’t Want A Job!! - Posted by John

Posted by John on November 19, 2001 at 09:59:15:

There’s a lot of creativity in the mortgage market. If you go into business for yourself in a field that you have worked in in the past, thats a definate plus. Also, if you have good enough credit (FICO +/-720) and a strong enough down payment (usually 20%) then you can pursue a stated income loan or no-doc loan. If you fit the parameters, you (in essence) just get to say that yes, I can make those payments.

In any case, good luck.


Re: But I Don’t Want A Job!! - Posted by dandrews

Posted by dandrews on November 17, 2001 at 15:56:18:

Look me up when you get here. Where are you going to be? I have no advice for your specific question but maybe I can help you make some contacts in RE.

Re: But I Don’t Want A Job!! - Posted by Eric Bramel

Posted by Eric Bramel on November 17, 2001 at 12:04:49:

Hi Tim,
A few years ago my wife and I were in the same situation. We had lived in Sacramento, CA for several years and moved to Spokane, WA to start our own business. We had some equity from our CA home, but most of it was to be used for the new business. Conventional banks would not touch us for a real estate loan (even with 30%+ down and perfect credit) because of our self-employed status.
We knew we would have little or no time to house hunt, so we shopped very carefully for a realtor who understood our situation and would work with us. We gave him a date we would be in town to house hunt and assured him we would purchase a house that week.
He arranged for us to see a variety of homes offerring nonconventional financing.
We ended up with a beautiful home in a very nice neighborhood. Divorcing couple were anxious to sell, dramatically reduced price, and a fully assumable non-qualifying loan. Took possession in less than 30 days.

Sorry about the long post, but I just wanted to assure you that it can be done (and we knew nothing about creative real estate at the time).
Good luck
Eric Bramel

Re: But I Don’t Want A Job!! - Posted by Mark

Posted by Mark on November 17, 2001 at 06:45:05:

If you are going to move and start a new company you will have a hard time finding a lender to lend you money. Case in point I moved 300 miles away to start a company and it was a franchise. No bank would even touch me except a Credit Union and I had to get my parent to co-sign a loan (This was for a home we purchased down here.) It has been 5 years since we have moved and live in another house now (We did not have to have anyone co-sign). I have been working very hard to to make the payments and pay it on time. Even when I go apply for a mortage The lender still wants to see my business tax plan. They have a right to see that becasue it is there money. I think with your situation you wiil need to do how Ron post suggest look for different ways to fund real estate.

Just a example of how real estate can be soooo good. I am in the process of refin my personal property and will walk out with a check for over 20,000 and my payments will be 20 bucks a month lower. Better yet I am also refi. all my rental properties and using the equity to use as a down payment on a 4-plex. Beauty of that is the I don’t need to come up with a dime of my own money when we close. I relize it’s still my money but have to say this real estate can be sweet at times.

Anyway do not be dismay at first, just work hard set some goals. In your situation will be harder than most people keep that in mind. Good luck.

Mark - IL

If it provides income it counts - Posted by JC

Posted by JC on November 16, 2001 at 23:09:33:

Any type of employment is considered a job. You will be considered to be self-employed however and may need to be in that job longer than the average “employed person” - I think the norm is two tax returns.

Here’s a story for you about counting income for mortgate calculations. My parents used to build houses. They were building a custom for a man in the Air Force whose wife was a nurse in the private sector. The couple was transfered to our town and wanted to build a new house. The bank was going to count the husband’s income but at the last minute decide not to count the wife’s income because she had moved to a new town in the last few months and they wanted to see two years employemnt in one place before they would count it. HELLO?!?! Wasn’t her husband an Air Force pilot who was transfered there? Didn’t she immediately pick up the same type job in the new town? I don’t understand how banks think sometimes.

Re: But I Don’t Want A Job!! - Posted by Ronald * Starr

Posted by Ronald * Starr on November 16, 2001 at 18:47:15:


You say you want to invest in real estate? Then why don’t you study non-institutional loans? Owner-carry loans? Taking a property over subject to the existing financing? Lots of info on this forum. Just use the search function to find what you want to know.

Good InvestingRon Starr*