Refinancing as a freelancer

Your self employment position would need to have been established for 2 years in order to use your income, unless you are going to operate the same type of business that you are already engaged in. I'd assume you could refinance now, keeping your future ex on the Deed, but off of the Mortgage & Note if your State allows and once divorced, you can then prepare a Quit Claim Deed to remove your spouse. This can be part of any settlement you eventually agree to. You would need to check with your attorney about this, but it would offer a solution to your needs sooner than later. Good Luck!

Almost all conventional and FHA lenders will require 2 years of profitable IRS 1040's, showing your self-employment. If you have 25% to 40% equity in the home, some lenders we deal with will finance you based on bank statment deposits for proof of income, some for a year or less of statements. However, the rates will be in the 7% to 9% range.

You need 2 years history of self employment for an underwriter to consider your income stable. Keep your current job until your divorce is settled. Also consider that the Loan Officer you choose will also deduct from your income any schedule A expenses that you have used to mitigate your income. Examples- mileage, Uniforms, etc....give me a call at 203-788-2619 to discuss.

Everyone is right my friend. You need to show at least two years of self-employment in order to qualify.

You do have to have at least two years being self-employed. If you get an an automated LP streamline approval it will only ask for one years worth of tax returns. However, you will still have to prove that you have a 2 year self employed history by business license or CPA letter. If you are doing the exact same job being self-employed as your previous W2 job you may be able to get the loan after only one year of full self-employment. It sounds like you have a lot to think about and I wish you the best. Sean

Before quitting, be sure to have a licensed an experienced loan officer review your situation. It may be OK to quit, or it may cause qualifying problems. No one hear can answer your question without reviewing a full application and a copy of your last two years federal tax Returns. Good luck!