I’m hoping to help a friend who’s a contractor buy a home. I’m about to list a house that’s ideal for him, and I’m willing to give him a deal.
It’s eligible for USDA financing, so it sounds perfect, right? But there’s a catch.
Here’s his situation:
He’s not a permanent resident or US citizen but is self-employed. He can provide two years of tax returns and bank statements showing about $90k a year in income.
His credit score is around 660, and he can put 10% down.
The purchase price would be $235k.
His wife is a permanent resident with a 710 credit score but has a thin credit file.
His mom, who is a US citizen, has excellent credit, but her only income is social security.
They have only one financed truck as debt. I’ve known him for over a year, and he’s one of the hardest-working people I know. I’d love to see him get this opportunity.
Mortgage experts—any ideas on lenders or programs that might make this happen?
For self-employed people, income can look lower than expected if they have high write-offs. For example, if he brings in 90k but writes off 70k, the income that counts would be 20k.
Great! Are there any key questions I should ask him about his credit or income to make sure he’s eligible? I don’t want to get their hopes up if there’s a disqualifying factor.
@Fionn
Just a heads-up—avoid giving any personal info to random people on here. If they represent a legit company, they can provide the official company info so you can reach out directly.
@Fionn
No problem—we can handle this together. Let’s set up a call where I can answer questions and make sure we’re covering everything. My company specializes in helping people in unique financial situations.
Honestly, it’s normal for loan officers to reach out like that. They may want to explain options, especially since self-employment income can sometimes complicate things.
Vanya said:
That 710 score might be from Credit Karma.
Yeah, probably! We’re planning to sit down and pull the 2/4/5 scores and get the full reports from Annualcreditreport.com soon. I might also add them as an authorized user on a few of my cards to help boost their credit score.
Haru said:
Lender here—this should be doable with either a USDA-guaranteed or FHA loan. Let me know if I can help!
Thanks, but FHA might be an issue since I’ve owned the property for under 60 days. USDA might work, but I don’t think he has work authorization. We’ll look at his taxes, but maybe his wife’s permanent residency could help with eligibility?