I purchased with cash from my mother - what are my options for self employed?

There's just not enough info to properly answer your question... What type of loan do you have now?? FHA, or Conventional.. if it's FHA, and you just purchased it, you won't have enough equity to pull out any cash... FHA cash out Refinance requires 85% LTV. Conventional guidelines will require 20% equity so 80% LTV... so if you just purchased it or bought this home years and years ago, it really depends on your equity position.. As far as qualifying, you will need 2 years tax returns, and whatever you show the IRS as income, that's what the lender will use for income.. The front and back ratios are no different for self employed borrowers vs. salaried, commission or wage earners... and to be fair.. if your mom "Gifted" you the funds, then why are you trying to "Pay" her back?? if you want to know for sure what your options are, you should contact a LOCAL mortgage broker, not the local "Big" bank, not your current loan servicer, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

You have two identifiable issues at this point: First, we need to know what your true income is based off of your tax returns. Secondly, there are various products and guidelines for cash-out refinancing and you will need to be sure to meet at least one set of these in order to successfully manage this transaction. I would recommend connecting with a licensed loan officer in your state to go over these options in detail, as there is much to uncover at this point. Please let me know if I can be of further assistance to you.

You have a couple of issues. Being self employed, it is likely the lender you use will only look at your taxable income adjusted for depreciation, averaged over the last two years, secondly, they will likely use the lesser of the price you paid for the home and what the home actually appraises for before calculating the maximum loan amount they will let you have. And finally, if your mother "Gifted" you the money to buy the house, borrowing against the house so you can pay her back implies that she actually lent you the money, and didn't gift it. That said, what you are looking for is probably doable. Contact a local Mortgage Banker/Broker, rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950