
Ask HN: Mortgage Financing for Independent Contractors? - earlydweller
Does anyone out there know of any lenders that work with 1099-based independent contractors?<p>I have a situation now where I am being rejected by lenders for a $170,000 mortgage when earning $160,000 per year. Since January I have been working as an independent contractor on 1099. I am being told that due to not having a tax history established as a 1099-based worker that they won&#x27;t count it as income. I even have W-2s that reflect similar income for the previous three years.<p>Additionally, I currently have a mortgage with a perfect payment history, and a pending home sale that nets me a bunch of money.<p>I figured I would throw this out to the Hacker News community as there must be an abundance of ICs out there. Anyone know of lenders that will work with a situation like this? Anyone have a similar story?<p>Heck, if nothing else, this seems like an opportunity for startups?
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davismwfl
Talk to a mortgage broker not directly with banks. There are plenty of lenders
that will do low/no doc loans still and they will work with you if you can
prove 2-3 years of similar salary to the 1099s. Getting loans as an
independent contractor can be a pain until you have a few years of proof under
your belt, but it isn't impossible if you are willing to do a little extra
work. Also, I wouldn't be shocked that the first one you will pay slightly
higher interest if you can't put down a substantial down payment.

I have done this myself, in fact I bought not only my personal homes while
being a contractor I had bought investment real estate too. It was also weird
because when I went from 1099 to my own business the first time it was harder
to get loans again for a year or two, not impossible, just harder. Banks teach
their front line teams to be conservative and reject anything that doesn't
look like a traditional loan, unless of course you can skip those teams as the
wealthy do. But every bank owns mortgage companies that do non-traditional
loans, and mortgage brokers are the ones that are suited to get you a deal
that works.

Don't be afraid of using a mortgage broker, they are not evil, they are not
there to steal money or to raise your rates. They serve a real purpose and
good ones can be a lifesaver.

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arthurcolle
This is a great idea, shoot me an email.

