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Old 10-04-2013, 05:50 PM
 
Location: Foothills of Northern California
442 posts, read 463,606 times
Reputation: 324

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The New FHA loan is called Back to Work- Extenuating Circumstances

We own free and clear... a half acre of land.. probably appraised at only 15 thousand dollars. Closest parcel to the town so it's the prime lot still vacant.

We want to get a loan for a home (when one becomes available) or possibly just land in an area which is very inexpensive to live.

Spend up to 99 thousand at the most. That should cover it very easily.

We had a short sale almost a year ago. We've been paying Rent for almost 2 years now on time, a little more Rent than what our house payment was. The reason we can afford this is we share internet with the neighbor, rent out part of the land and the water is free. So it's actually a much nicer home for less money

If I showed them my income from Ebay, income I didn't report..would that help us to qualify? All our income we've always reported but we were doing bad financially for a few years and barely had money for food. I didn't want to risk having to pay taxes on it. This year our business has picked up, especially the last 6 months and my Ebay Store is doing much better to. Especially now that i know what to buy.


Thanks for any advice. I've read on the loan and it appears we qualify in a few months- Jan 2014 (exactly a year from our short sale)- and we are thrifty.

It's the down payment and proof of income I wonder about.
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Old 10-04-2013, 05:57 PM
 
3,317 posts, read 7,251,326 times
Reputation: 4095
If you don't pay taxes on it, you cannot use it. Period.

Your note about being able to afford it because you share internet? IMHO, take some time and do not buy. Rates will be great for a long time.

Keep things moving forward. You will need paystubs and reported income. Your tax returns will be used, and the ebay income must be reported for 2 years to be usable. Also, you will likely file that income on a Schedule C. Your net income, which goes on Line 31 of the Schedule C, will be the income used for the application, along with income from jobs.

It really sounds like you should hold off, though.
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Old 10-04-2013, 06:22 PM
 
Location: Foothills of Northern California
442 posts, read 463,606 times
Reputation: 324
Quote:
Originally Posted by Pfhtex View Post
If you don't pay taxes on it, you cannot use it. Period.

Your note about being able to afford it because you share internet? IMHO, take some time and do not buy. Rates will be great for a long time.

Keep things moving forward. You will need paystubs and reported income. Your tax returns will be used, and the ebay income must be reported for 2 years to be usable. Also, you will likely file that income on a Schedule C. Your net income, which goes on Line 31 of the Schedule C, will be the income used for the application, along with income from jobs.

It really sounds like you should hold off, though.
Ok thanks. That means they won't accept the $1000 month Ebay income even if I show them the proof. I will now report this income (as we normally do)

We have a Painting Company, and have a few contracts back- Two School systems ran out of money so we didn't work for a long time.. but they got the funds back, for the next few years at least...

We really like this towns recreational opportunities where we wish to buy. And everything about it. Oh well...

Yes, it sounds like we need to hold off unless owner financing becomes an option. Thanks again for your help

Last edited by californiawomann5; 10-04-2013 at 06:38 PM..
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Old 10-05-2013, 06:01 AM
 
Location: Bloomington IN
5,861 posts, read 7,082,141 times
Reputation: 14068
Even with this loan, I think you need to wait a few years. It sounds as if your income has been inconsistent over the past few years. It also sounds as if you are self-employed as you own the company. Lenders are really hard on the self-employed. They want to see consistent, or increasing, company profits and income.

A word of warning regarding the non-payment of taxes on ebay income--that income can be traced back to you. My understanding is that PayPal sends out 1099's to users.
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Old 10-05-2013, 03:05 PM
 
Location: Foothills of Northern California
442 posts, read 463,606 times
Reputation: 324
Quote:
Originally Posted by rrah View Post
Even with this loan, I think you need to wait a few years. It sounds as if your income has been inconsistent over the past few years. It also sounds as if you are self-employed as you own the company. Lenders are really hard on the self-employed. They want to see consistent, or increasing, company profits and income.

A word of warning regarding the non-payment of taxes on ebay income--that income can be traced back to you. My understanding is that PayPal sends out 1099's to users.
Yes they send those to Sellers who have over 200 transactions -And- make 20 thousand or more.
I made $10,000. Actually I made less because I had to purchase the product, pay for postage and fees. I go for 60% profit so it's closer to $6000
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