Sami's Work at Home Guide

Question: Can anyone review my financial info and let me know if you believe I can qualify to purchase a home?
Hello – I would like to give you some of my financial information to see if you believe I would qualify for a loan before having to run my credit and have points deducted.

I turn 20 years old in the fall. I own a landscaping business. I have been living with my parents to be cheap and save money for as long as I can hoping to buy a house and to build a good financial cushion I make a base salary of $ 2,653.00 each month, $ 31,836 a year. The business pays pretty much all of my expenses, cell phone, vehicle, fuel, insurance, 50% of health insurance, office telephone and internet – pretty much everything but food, hygiene, clothes, and entertainment. I feel very comfortable with roughly a $ 900-$ 1,100 a month payment, by IRS regulations I am able to reimburse myself 15% of all expenses for a “home based business” (my office) for (mortgage payment, water, electricity, TV, etc) so I plan about $ 130-$ 150 from that.

Experian reported my credit as of 7/31/09 of 742

1 account now closed, no late payments etc
1 account open – $ 500 limit no balance (paid off each month)
1 account open – Business Equipment Purchase roughly $ 15,000 remaining of $ 24,000 – no late payments etc.

Where my problem is,

In 2007 I reported $ 19,000 in gross income from a previous employer – 3 years of reports
2008 $ 10,000 (first legal year in business, about 60% of my wages were under the table which hurts for my situation now)
2009 –

I am also employed by Sheetz for the winter, basically just a hobby to have something to do. I roughly pull in about $ 2,500 over the 3 winter months working part time there.

Another problem is I do not have a co-signer.

I would like to look into purchasing within the next (3) months if it is possible, I just would prefer buying then renting.

If you believe I might be eligible let me know and we can go ahead and do the actual prequalification – I just don’t want to run my credit if I have a few possible reasons that can revoke my qualification.

Answer:

Answer by Janet P
You will qualify for a loan, and you won’t need a co-signer with that credit.

However, you will only qualify to borrow around 25k. that is a problem, other then finding property priced that low, not many banks are even willing to lend such a small amount.

Your salary is whatever you told the IRS it is. If your adjusted income is only 10k that is all that they will look out. Telling them you are committing tax fraud is not going to help you.