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How do I get a mortgage when all of my income is black hat?

Discussion in 'BlackHat Lounge' started by Tirade, Apr 19, 2012.

  1. Tirade

    Tirade Registered Member

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    I'm American. I want to buy a house. I have the money for it as well an excellent credit score. The problem is the banks want nothing to do with me because my income comes from affiliate marketing and is therefore considered self-employment. Since banks don't treat the self-employed too kindly and since I don't have anyone willing to co-sign for me, I can't get a traditional mortgage. The only thing I can hope for at this point is to find a shady mortgage lender who is willing to overlook these issues. I'd rather not do this, but I don't feel like I have any choice.

    The reason why I'm here is because I'm sure someone else here has gone through similar troubles, and I'm hoping they can offer some advice on how I should get a mortgage. Or at least point me in the direction of a mortgage lender who sells no-documentation mortgages.

    I've already tried Googling this and asking people I know. I don't know where else to ask. Please help me out BHW. I'd really appreciate it.

    Edited to add:

    A major problem is that my income is recent. I don't have the 2+ years of tax returns and bank statements that lenders willing to work with the self-employed ask for.

    I guess what I'm looking for are suggestions on how to find a lender who sells Stated Income Mortgages or No Documentation Mortgages. I know the lenders who advertise these don't like to advertise them, which is why I'm struggling to find one.

    P.S. Thank you so much to everyone who responds.
     
    Last edited: Apr 19, 2012
  2. jdwurn

    jdwurn Registered Member

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    Do you have income for several years which is documented? I really don't see why they would care if you are self-employed, so long as you have a steady income.
     
  3. TheMidasTouch

    TheMidasTouch Registered Member

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    If you're american and self-employed, assuming your credit is good, will accept you if you show your regular desposit history. Meaning, if you can show them your history of consistent deposits into your account, then you'll be fine. Doesn't hurt to bring your ez1040 form (IRS Form you turn into government for taxes) from your past few years, that works for them. If you just hoard your internet money and don't report any of it, then your out of luck.
     
  4. mrsix

    mrsix Power Member

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    Form a legal company and keep books. I suggest forming an LLC and giving yourself a salary however large or small. Hire a CPA to run your books, payments, etc and in no time you'll have a "white hat" paper trail from your "black hat" income.
     
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  5. rippy

    rippy Regular Member

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    Get a job, work 3-6 months, buy a house and the quite.
    Besides this regular job, since my new job income is not that much for mortgage that I want, I have offshore company, and I have shown them signed contract that I do work for them for past 3 years and ongoing, and my salary is $3000/month. combined with the salary of $4000 at regular job, I got approved mortgage of 750 000.

    Still have not bought a house :)
    will happen till the end of the year, just to tie up some lose ends. After that I quite and just surf surf :)
     
  6. huser21

    huser21 Regular Member

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    Contract for deed? You'll still get very similar right from the IRS. Youll need a down payment but the seller carries the note. Remember -everything is negotiable.
     
  7. Tirade

    Tirade Registered Member

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    Thanks for the suggestions all. The problem is that my income is recent. I don't have the 2+ years of tax returns and bank statements that lenders willing to work with the self-employed ask for. I'll add this info to my original post.

    I guess what I'm looking for are suggestions on how to find a lender who sells Stated Income Mortgages or No Documentation Mortgages. I know the lenders who advertise these don't like to advertise them, which is why I'm struggling to find one.
     
  8. huser21

    huser21 Regular Member

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    sorry-write offs from the IRS
     
  9. huser21

    huser21 Regular Member

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    Stated income is all but dead. Its what got the housing market where it is.
     
  10. CEPI

    CEPI Power Member

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    You'll need to find a lender that will do a Stated Income or Bank Statement (VOD: verification of deposits), the problem is that the LTV they will over you will be pretty sparse. You'll need a good 30% down most likely. You'll probably need at least 18-24 months of bank statements and a hefty down payment. Definitely good you have a great credit score because you will need a near perfect score to qualify for any self-employed mortgages.
     
  11. CEPI

    CEPI Power Member

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    Stated, SIVA, and No Docs are back (unfortunately) you just need massive downs. The lenders are banking on your default in which case they, in essence, bought your property at a discount.
     
  12. Cnotey

    Cnotey Power Member

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    Dude, never tell a bank you do affiliate marketing. Tell them you are an advertising consultant lol. Also, no bank is going to lend you anything if you don't have at least 2 years of bank statements to show steady income.
     
  13. rileyb

    rileyb Junior Member

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    dont buy a house you will be stuck with it...Im trying to get out of my mortgage and my house is worth less than I borrowed over 8 years ago..
     
  14. dealsopoly

    dealsopoly Power Member

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    Do it Blackhat style! Fake the referrer and fool the bank into thinking you are legit ;)

    jk. I'm from Canada so I don't know how the American banking system works. Good luck to you! I hope you succeed in getting your mortgage.
     
  15. Taktical

    Taktical Elite Member

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    PM me, I know a lot of mortgage brokers who may be able to help you.
     
  16. Griller

    Griller BANNED BANNED

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    I had a similar problem, all my income was from affiliate marketing, it was decent, but like you said, the banks aren't big fans of it.

    Basically with self-employment, my banker said if you can show at least 2, but preferably 3 years of steady income with it either staying the same or going up, it would just be like having a regular W2 job.

    Also, he said that you have to be working somewhere for 2 years for them to count it as W2 employment, or in the same field for 2 years. I don't know if that was my bank specifically or what, but my job that I had for 5 months wouldn't cut it.

    Good luck with stated income mortgages, banks are a lot more regulated now than they were back in 2006.
     
  17. Union

    Union Power Member

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    NOPE, its not gonna work :)
    He needs to open an LLC, and for at least 1.5 years to get Weekly Checks on his name, of course he needs to PAY TAXES :) if he wants a house... and then he is good to go... BTW, Nobody told you if you show them up to $10.000 in Cash, and didnt pay any taxes, IRS can knock on your door ? I wouldnt tell the Banks that i have a lot of cash, but no Legal papers on that cash... Turn you Brain ON, cause you'll Get JAIL no House :) And Next time when you wanna go to another Bank to ask for mortgage, FIRST find a SMART !!! Accounter and let him to know your situation, DONT Tell The Bank about your Cash, if you dont paid taxes on all that amount ! Believe me, They'll Report you to IRS, According to LAW, they are obligated to Report you, if you show them $10.000 and up in Cash and no taxes on that amount... BTW, if you dont want to pay taxes, Get a new Lease (car), and enjoy your life, but dont play with IRS...
    Good Luck !
     
  18. TehEpidemick

    TehEpidemick BANNED BANNED

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    why not found a seller financed house? pay x amount down and x a month. Just bought a $200,000 house for 20k own and 1200 a month for 180 months. Not great but not bad.
     
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  19. Gmk1212

    Gmk1212 Newbie

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    That is a tough situation. I have been self-employed before and have found that unless you have a proven history of steady income while self-employed, credit (in large sums especially) is hard to get without a significant amount of collateral. I hate to say it, but you will probably have to just wait to build up a reputation as a successful self-employed professional.

    Good luck never the less!
     
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  20. knall

    knall Regular Member

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    I guess if most of your income is recent, how stable is it? Things might be looking great but with IM that can change in an instant. Not to be a downer, just laying it out there.