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Schedule C is the form used in your federal tax returns that reports income you've earned when you are self-employed or are paid via 1099 (as opposed to a W2).

With part-time gigs and side hustles like ride-sharing, freelance work or consulting, blogging, house-sitting and dog walking you will receive a 1099 at tax time for the money those jobs earned you.

Because that income is reported differently and can have expenses written off against it, we need to take a closer look at your returns to determine what your actual qualifying income is. We also need to show a 2-year history of that income in order to count it towards the income you can use to qualify for a mortgage.

Therefore, in addition to the regular documentation needed, we also need all pages of your last 2 years' tax returns.

For more details on the mortgage process and documentation, listen to episode 6 of Erin's MortgageCast podcast.

 

Additional Resources


Are you a first time home buyer?

Consider downloading our FREE homebuying guide specifically for those new to the process. It's packed with useful information, checklists and tip sheets to get you off on the right foot.


Are you ready to take the next step?

It's time to get pre-approved with Erin the Expert!

 

 

 

 


A renovation mortgage could be the right loan product for you. If you're looking to purchase a home or renovate your existing home, you should consult Erin the Expert about your plans. She will be able to explain the different options available.

In this video, Erin tells us about the two types of FHA 203k renovation mortgage programs - how they are different, what they can be used for and the process for getting one.

Below are some notes, details and examples from this episode.

General guidelines

  • Can be used to
    • Purchase and repair a home that needs TLC
    • Finance the renovation of your existing home
  • 203k renovation loans are an FHA product which means 3.5% down payment (96.5% max LTV)
  • Can borrow against 110% of the after improved (end) value (see example)
  • Renovations can be up to 50% of after improved (end) value
  • Can be used to finance the cost of
    • Renovations
    • Permits
    • Inspections
    • Reserves
    • Additional closing costs.

Types of 203k Renovation Loans

  • Limited 203k
    • $35k max renovation
    • Good for roof, windows, bathrooms, kitchens
  • 203k standard
    • Projects over $35k
    • Good for comprehensive and structural repairs: additions, rebuilds, multi-room

You will need a 203k Consultant

  • Independent 3rd party
  • Reviews plans and pricing - Ensures financially feasible
  • Inspects work - Makes sure end result is safe and livable

Max Loan Amount Example

  • Value before renovations: $150,000
  • Renovation costs: $50,000
  • End value: $200,000 ($150,000 + $50,000)
  • 110% end value: $220,000 ($200,000 x 110%)
  • Max loan-to-value (LTV): 96.5% (3.5% down payment)
  • Max mortgage amount: 
    • $220,000 x 96.5%
    • $212,300
  • Minimum down payment (equity) required: $7,700
    • $220,000 x 3.5%

Additional Resources


Are you a first time home buyer?

Consider downloading our FREE homebuying guide specifically for those new to the process. It's packed with useful information, checklists and tip sheets to get you off on the right foot.


Are you ready to take the next step?

It's time to get pre-approved with Erin the Expert!

 

 

 

 


Learn about the tools Erin the Expert uses to enhance her clients' experience during the mortgage and home buying process and what she does at closing to bring a smile to everyone's face.

You can download Erin's mobile app here (or text ETE to 36260).

Take a look at the What to Expect (W2E) here

Check out some of Erin's #HappyHomeowners here

Want to learn more about ETE and the rest of Greenway's Shore Mortgage Team?​ Check us out then reach out

Reach out to Erin by phone, text or email: (908) 489-4657, ​erin.carvelli@greenwaymortgage.com


Check out the other videos in the series:

Want to set some time to speak with Erin directly? Click here. If there's anyone that can get a deal done it's Erin the Expert. #ETE

And if you like podcasts, check out Erin's MortgageCast too. She keeps it short and cuts right to the meat of each topic.

(MortgageCast)

 


Have a side gig? Just got married? Received a sizeable gift from a relative?

When you're applying for a mortgage these situations are important, can have a significant impact on your qualification and must be documented in a specific way.

Erin the Expert is out with the latest video in her series on mortgage topics.

Reach out to Erin by phone, text or email:


Check out the other videos in the series:

Want to set some time to speak with Erin directly? Click here. If there's anyone that can get a deal done it's Erin the Expert. #ETE

And if you like podcasts, check out Erin's MortgageCast too. She keeps it short and cuts right to the meat of each topic.

(MortgageCast)

 


 

Renovation Loans are a great way to purchase (or refinance) a home in need of repairs and roll the cost of those repairs into your mortgage payment. The process and documentation for these types of loans are slightly different. Watch Erin the Expert's latest video to find out if a Renovation Loan is right for you!


Check out the other videos in the series:

Want to set some time to speak with Erin directly? Click here. If there's anyone that can get a deal done it's Erin the Expert. #ETE

And if you like podcasts, check out Erin's MortgageCast too. She keeps it short and cuts right to the meat of each topic.

(MortgageCast)

 


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