Greetings all,
I am self-employed, as most of you are. I have learned the hard way that it's not easy to get a mortgage in my situation.
For the last two years, I have taken very big deductions on my taxes in the business expenses category. So, my Schedule C shows that I am dirt poor on paper, despite the fact that I am making a comfortable living. The nice thing was getting a refund every year. The sad fact is that after 2007, the rules were changed and now every lender is required to look only at my schedule C, and calculate what they can lend from that. (It was a meager amount)
The moral of the story is, I will not buy any new gear this year, and in 6 months, have a much healthier schedule C when I do my taxes. I will probably have to pay Uncle Sam a healthy chunk of change, but I will be on the road to finally getting a mortgage.
I am self-employed, as most of you are. I have learned the hard way that it's not easy to get a mortgage in my situation.
For the last two years, I have taken very big deductions on my taxes in the business expenses category. So, my Schedule C shows that I am dirt poor on paper, despite the fact that I am making a comfortable living. The nice thing was getting a refund every year. The sad fact is that after 2007, the rules were changed and now every lender is required to look only at my schedule C, and calculate what they can lend from that. (It was a meager amount)
The moral of the story is, I will not buy any new gear this year, and in 6 months, have a much healthier schedule C when I do my taxes. I will probably have to pay Uncle Sam a healthy chunk of change, but I will be on the road to finally getting a mortgage.