Self-employed getting a mortgage, why Fannie Mae just threw you a curve ball

Posted on October 19, 2012 by Ray Williams (NMLS #216267).

As of tomorrow FNMA 9.0 goes into effect for underwriting Conventional mortgages. What this means to many self-employed borrowers could be impactful. You see for as long as I can remember we have underwritten a Conventional loan and had to get 1 year of tax returns for you if you are self-employed. We qualified you off this 1 year income calculation. Whereas, FHA has always asked for 2 years tax returns, and takes a 24 month average.

So effective tomorrow Fannie Mae (conventional loans) will require 2 years tax returns for those qualifying self-employed borrowers. This could definitely impact many folks who are not ready. If your income in 2012 is good and you are self-employed be very mindful of how you prepare to file your 2012 taxes. That way you can be bankable by using 2011 and 2012 returns. Talk to your C.P.A now!

If you are self-employed and need solid mortgage advice from an experienced mortgage lender, let me know~


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