Still Jumpin through Hoops

Dixieray53 · 12-21-2010, 06:17 PM

Day 2 of our quest to navigate the new banking system to buy our 2009 DP. Today they wanted bank statements, blood type, and all kinds of other stuff. I am self employed. Own my own S Corp. What a bunch of crap. I know be patient, they are only hoops....BUT...Thoughts?

**NLOVNIT** · 12-21-2010, 08:50 PM

Being self-employed is not the best circumstances when it comes to getting a loan, any loan. We went through the same hoops to buy our first home & that was 20 years ago. It took forever, a mound of supporting documents, no doubt an FBI background check & the bank stopped short of asking for a pound of flesh...but just barely short.

I can only imagine, with the economic times we're going through now & bank skittishness for lending, it's gotten worse. All I can say is, yes, be patient. Or become a credit union member. We've not once, had an issue with getting a loan through our CU.

Lori-

frankdamp · 12-22-2010, 08:33 AM

x2 on Credit Unions. Been a member of the Boeing Employees CU since 1968.

**RickO** · 12-22-2010, 11:07 AM

Sure does sound like a lot of hoops to jump through. I wonder why tax returns aren't sufficient to verify income.

Rick

Dixieray53 · 12-22-2010, 01:16 PM

Thanks to all..We got it. pictures and more in New Coach Thread.

srrobe · 12-23-2010, 01:03 PM

Congrats

Banks for sure have gotten gun shy! Enjoy!!

RABBITFISH · 12-23-2010, 01:04 PM

Switching over right now!!

bookman52 · 12-26-2010, 09:50 PM

Having been a mortgage loan officer I know what you are going through. However self employed people have the greatest ability to play with the numbers when qualifying for a loan

PlayItForwrd · 12-28-2010, 05:52 PM

Quote:

Originally Posted by RickO

Sure does sound like a lot of hoops to jump through. I wonder why tax returns aren't sufficient to verify income.

Rick

I too am self employed (partnership) and I can explain why tax returns aren't sufficient proof of income: It's because my name is on all the business bills too. What this means is, when my credit report is run my total debt load includes my personal AND business debt. But only my personal income (via personal tax returns) is used in the debt-to-income ratio calculations. It's kinda hard to get a loan when your DI ratio is in negative territory! And trying to work around it is a freakin' joke. Doesn't matter that the business loans are also in the business name, lenders won't discount them. Nor will they allow me to use any additional business income as "income". Personal tax returns only...

The only reason I get loans at all is because I've been with the same bank for over 30 years and they know where every dollar I make comes from and where it goes. And they're willing to help. But I can't get a $2000 loan from anywhere else even with an $80,000 houseboat as collateral.

Good luck...

**RickO** · 12-28-2010, 07:08 PM

Quote:

Originally Posted by PlayItForwrd

I too am self employed (partnership) and I can explain why tax returns aren't sufficient proof of income: It's because my name is on all the business bills too. What this means is, when my credit report is run my total debt load includes my personal AND business debt. But only my personal income (via personal tax returns) is used in the debt-to-income ratio calculations. It's kinda hard to get a loan when your DI ratio is in negative territory! And trying to work around it is a freakin' joke. Doesn't matter that the business loans are also in the business name, lenders won't discount them. Nor will they allow me to use any additional business income as "income". Personal tax returns only...

The only reason I get loans at all is because I've been with the same bank for over 30 years and they know where every dollar I make comes from and where it goes. And they're willing to help. But I can't get a $2000 loan from anywhere else even with an $80,000 houseboat as collateral.

Good luck...

What a nightmare. Thanks for the explanation.

Rick

a k · 12-28-2010, 07:11 PM

What gets me is you can buy a new car with no money down and bad credit.

Dixieray53 · 12-29-2010, 05:23 PM

It's home !!!!!! Yes I was able to pull around the house ( circle drive) and back into our space. This MH is only 6 feet longer then the Bounder but it still was a chalenge (sp). Will post photos tommorow. Tom Johnson was great 3 hour PDI. Everything works. We are, wait for it, are having dinner and spending the nite dry camping in our yard. The electrican did not finish upgrading the power to our parking pad. Anyway
thanks for all the good wishes.