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Mortgage Grapevine

1 year tax returns instead of 2?

Any FHA or RD Lender just require 1 year tax return? Borrower had the income in 09, but no 1099. Long story, but an A/E told me FHA allows it, but just trying to find the lender. 700 score Florida purchase. Thanks
by Alligator September 23, 2011 4:01 PM


Good luck finding an FHA lender that will

Per the FHA Handbook: http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.1.B.2.g

The lender must obtain

* federal income tax returns for the most recent two years, both individual and business, including all applicable schedules, for self-employed borrowers, and

*individual federal tax returns for commissioned individuals.
by OHlo61 September 23, 2011 4:15 PM


An A/E told me that FHA allows 1 year, but their company policy was 2. I am with you; I thought it was 2 years. Thanks. --Go Gators.
by Alligator September 23, 2011 4:26 PM


Sounds kinda like your issue is not showing returns, but having 2 years of self employment income/1099?

FHA will allow financing for over 1 year of self employment but less than 2, we have little overlays on FHA and go by the 4155... however we dont do business in FL. Sorry... But maybe there is someone out there...

http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.4.D.4.c


by BOYDSTUN951 September 23, 2011 5:07 PM


If you can prove it is the same job or same line of work, then you may be able to. Example: a w2'd truck driver for Fedex for 10 years, then goes and buys his own route and becomes 1099 contractor for FEDex. I've closed a few like this. Check with Wells wholesale if they'll allow this as a TPO. they will do it on the retail side...

by ol'canuckle head September 23, 2011 5:17 PM


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