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Old 11-03-2011, 03:19 PM
 
Location: sumter
1 posts, read 17,997 times
Reputation: 12
Lightbulb home loan no proof of income

I am enguaged and looking to buy a house. i make pretty decent money and have great credit but i do not have tax returns. im self employed and havent filed in 3 yrs. i know this is wrong and i actually plan on starting this year. I guess i should have planned for this 3 yrs ago but i didnt. Is there anyway to get a home loan without tax returns????help???
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Old 11-03-2011, 03:30 PM
 
Location: Huntington, NY
7,631 posts, read 10,359,140 times
Reputation: 3412
Hmmm, you want a bank to lend you money without having proof that you have income to pay back the loan??? Isn't this part of the reason the housing market is in trouble?

Would you lend a substantial amount of money to a stranger and take his/her word for it that s/he will repay you but doesn't show you they have the means to do so?

My suggestion: get the help of an accountant and get those returns filed. Once you've done that, and you show enough income, you'll be able to apply for a mortgage.

Just sayin'...
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Old 11-03-2011, 03:34 PM
 
187 posts, read 396,499 times
Reputation: 193
You probably need to go back and file your taxes for the last three years. The IRS allows you to file taxes up to three years late. You'll probably owe them some late fees or penalties. Before looking to buy a house, you should settle your debt with the government, as this will only cause you more issues in the future.

If the IRS figures out that you have been evading your taxes, they could put a tax lien on you, which will affect your credit and buying power.

Talk to a tax expert and get your taxes done before you miss the grace period. Any penalties you have to pay now will be better than any punishments in the future. Once this is cleared up, then look into working with a lender and buying a house after.
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Old 11-03-2011, 04:11 PM
 
Location: Boise, ID
5,361 posts, read 10,235,040 times
Reputation: 4677
Absolutely you can buy a house without tax returns. How much cash do you have? That's how much house you can afford.

Seriously though, what these guys said is correct. You're going to have to deal with the tax filings before you can buy, and if you deal with them before the 3 years is up, it will probably be a lot less headache.

Lenders are very strict right now. In order to get a loan, you have to fit every one of their little boxes. And one of those boxes is for income and tax returns.
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Old 11-03-2011, 05:11 PM
 
272 posts, read 276,318 times
Reputation: 218
In this environment I think banks will see you as too risky, I would assume if you did not want to buy a house now you would probable would not file those returns now. You creditability is damaged.
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Old 11-04-2011, 06:48 AM
 
Location: Wisconsin
4,976 posts, read 3,053,232 times
Reputation: 5088
You don't want the IRS on your tail. File your back taxes, and afterwards a bank is going to be much more willing to lend you money.
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Old 11-04-2011, 07:20 AM
 
21,477 posts, read 35,351,953 times
Reputation: 10511
The above is mostly correct. The only thing I disagree with is that lenders will somehow make a "values judgment" against you your bad behavior. This does not happen. The system is set-up for lenders to enter all the info they are give, fill out all the check boxes, get the rate that matches your credit score / down payment. There is no room for them to say "nasty you for not filling on time, denied!". The flip side, of course, is there also no room for them to say "well here is a fine upstanding citizen that saves up a ton of money,follows or the rues for clean living and just impresses the heck out of me, we'll loan them more than the computer says so they can get a nicer home in a better area..." NOT HOW IT WORKS!!!!

Sadly the regulations that were previously in place for "no documentation loans" were part of the reason for the meltdown -- any lender with even a hint of intelligence knew that many folks borrowing without documentation were doing so ONLY to get more house than they should have and really had no ability to pay for but the lenders COULD NOT just "kick the bums out" as the regulations were setup so some other lender on the same automated system would go right ahead and make the loan and poison the pools of mortgages anyway...
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Old 11-06-2011, 10:54 PM
 
450 posts, read 666,403 times
Reputation: 224
Quote:
Originally Posted by Elke Mariotti View Post
My suggestion: get the help of an accountant and get those returns filed.
Once you've done that, and you show enough income, you'll be able to apply for a mortgage.
I agree!
Kill two birds with one stone
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Old 11-06-2011, 11:56 PM
 
483 posts, read 625,201 times
Reputation: 1365
haha good lucky buddy. I wanted to do a no-doc loan, downing $935k on a $1.35M house and yet no bank will touch it. I have a good fico too. If I can't get a no-doc loan with freaking 70% down then you better think about buying cash. The mortgage market is dysfunctional now. There's no way a 30% LTV loan can be considered risky but apparently it is in my case? These lenders are just stupid
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Old 06-09-2013, 10:39 PM
 
2,355 posts, read 2,926,105 times
Reputation: 2465
I'm closing a true no-doc loan this week. 55% LTV max, 9% on a 5/1 ARM with the first 2 years IO. 3-4 points based upon credit. It's a cashout refi @1.8M value = $950k loan.

The loans are out there, it's just that terms match up more closely with risk these days. Terms are friendlier on purchase loans, and alt-doc stuff if you can go with a Bank Statements loan.
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