Yes, You Can Get a Mortgage if You’re Self-Employed

self-employed-loans

The so-called “gig” economy means more people than ever are self-employed, receiving 1099 tax forms as independent contractors. A study by Intuit predicted that by 2020, 40 percent of American workers would be independent contractors.  In the world of the self-employed, the idea of securing a mortgage can seem like a fantasy. Unlike the traditionally employed, the self-employed entrepreneur is seen as a greater risk. Despite making a good living, some self-employed workers never even apply for a mortgage, believing the dream of home ownership is cut off by slim chances for approval.

This isn’t necessarily true! Don’t give up on home ownership just because you’re self-employed. Instead, take the steps to boost your status in the eyes of lenders. Here are some tips to put you on the path towards pre-approval:

  1. Lower your debt. Debt is what haunts almost all new buyers seeking a loan. If you’re self-employed and debt-free, or have a low income-to-debt ratio, you look much more appealing to lenders.
  1. Keep your personal and business accounts separate. Professionals draw a line between business income and expenses and personal income and expenses. Demonstrating this level of maturity is a plus.
  1. Deduct less on your taxes. The self-employed are almost always guilty of taking tax deductions which cast a little shade on their mortgage application. Take honest, documented deductions, and don’t make it look like you’re desperate to cook the books!
  1. Register and pay yourself like a pro. Make sure your business is licensed and registered and, if possible, setup your business structure to pay you on a W-2 form rather than declaring your income as 100% 1099.
  1. Document everything. Make no claim without paper (or verifiable digital records) to back it up. Check stubs from clients, proof of income, expenses… everything. The more thorough and organized your documentation, the better you look to the lender reviewing your file.

It can also be useful to make a larger down payment than most, but lenders understand this can be difficult. You may be eligible to use your IRA or even an old 401(k) to boost your down payment, but talk to your tax professional before you make any moves.

Don’t let self-employment cloud your view of securing that mortgage. It is possible! I’d be happy to put you in touch with lenders when the time comes!


Toyota Gears Up for Groundbreaking in Plano

future home of Toyota

Toyota North America will break ground Tuesday in Plano for their new U.S. headquarters.  Construction is expected to complete in late 2016 with 4,000 possible positions transferring from their current California facility. According to the article of NBCDFW.com, “A spokesperson for Toyota said the quality of life in North Texas is one of the  many reasons the company decided to make the move from California.”

You can see the rest of the article HERE.


#1 Reason to Sell Now

alarm-clock-

If you are one of the many homeowners out there who are debating putting their home on the market in 2015, don’t miss out on the opportunity that currently exists. There will be significantly less competition in the winter months than in the spring.

According to the National Housing Survey released by Fannie Mae, 45% of homeowners “say mortgage rates will go up in the next 12 months.”

What Does This Mean?

Homeowners are unaware that interest rates are projected to go up by all four major reporting institutions – This is big news for move-up buyers reflecting the overall amount of housing inventory that will be on the market.

If existing homeowners believe that mortgage interest rates are not going to increase, then they won’t be inclined to make a move by putting their home up for sale, meaning less competition for sellers who list now.

Don’t Wait!

The study also revealed that:

“Those who say it is a good time to buy a house rose to 68%” & “the share of respondents who think it would be difficult to get a home mortgage today decreased by 3 percentage points.”

As Doug Duncan, senior vice president and chief economist at Fannie Mae explains:

“We expect consumer attitudes toward housing to improve as the pickup in the overall economy lifts employment and income prospects.“

Bottom Line

There are buyers out there who are ready to make a move. If your goal this year is to move up to your dream home, what are you waiting for?

– Keeping Current Matters; January 5, 2015


Toyota rents temporary offices for hundreds of workers in Plano

Less than a week after announcing plans to move its North American headquarters to North Texas, Toyota Motor Corp. has already rented space for a temporary office. The giant automaker has leased 120,000 square feet in the Campus at Legacy complex just east of Dallas North Tollway on Legacy Drive. Toyota plans to have its first workers in the building by August. Thinking about selling? Now is the time. Insert article in the blog, not just the link.

NB_12RECYCLE2_3818635

Toyota is renting 120,000 square feet of office space at Plano’s Campus at Legacy complex. The automaker has said it plans to have the first employees start here in August.

Less than a week after announcing plans to move its North American headquarters to North Texas, Toyota Motor Corp. has already rented space for a temporary office.

The giant automaker has leased 120,000 square feet in the Campus at Legacy complex just east of Dallas North Tollway on Legacy Drive.

Toyota plans to have its first workers in the building by August, the company previously said.

The company will use the office space while it builds its 1 million plus-square-foot office campus at Legacy and Headquarters drives in Legacy business park.

Toyota leased the office space from San Francisco-based Spear Street Capital, which owns the 1 million-square-foot Campus at Legacy.

Other tenants in the buildings include Denbury Resources, PepsiCo, St. Jude Medical, Bear Transportation, FutureWei Technologies and Dr Pepper Snapple Group Inc.

Bruce Miller and Paul Martin with the law firm Vinson & Elkins negotiated the office lease with Chuck Sellers, Russ Johnson and Lauren Perry with Peloton Commercial Real Estate.

Miller said the transaction to rent the office space happened quickly.

“We didn’t know who the tenant was going to be until Monday,” he said. “The lease was signed Wednesday.”

Toyota said Monday that it is moving about 4,000 of its jobs from California, Kentucky and New York to a new U.S. headquarters complex it will build in Plano.

Most of the moves will take place in 2016 and 2017, after the new campus is opened.


Why Not Move to Texas!

securedownload

The new Toyota Corporate headquarters will be left of the new FedEx headquarters

in the new Legacy West development in far north Plano along 121 Tollway

 

Legacy West Strikes Again

Toyota, the world’s biggest automaker, is putting its North American headquarters in Legacy West on more than 70 acres at the corner of Legacy and Headquarters drives.  It’s right across the street from where FedEx Office will have its new headquarters.   Between Toyota and FedEx Office, more than 5,200 corporate office jobs will be coming to the project, which surrounds J.C. Penney’s headquarters.   The developer of Legacy West is Fehmi Karahan, the same developer of the Shops at legacy across the North Dallas Tollway.  Karahan Cos. is building the $2 billion Legacy West in partnership with developer KDC and apartment builder Columbus Realty.  “It’s going to happen very quick,” Karahan said. “Toyota is going to break ground before the end of the year.  There is unbelievable momentum.”     Karahan expects to announce soon other large corporates relocating to his development from across the nation.

–          Dallas Morning News, April 29, 2014

“Why Not Move to Texas!”

The business owner who employs over 1,000 next door to the Toyota corporate offices in Torrance, California summed the move up in a few sentences.  “Why not move to Texas!   The taxes are lower, the regulations are less, the climate is business-friendly, the politics are conservative and there is a true entrepreneur spirit.  In California, we have none of those qualities.    In fact, a report out today in the Dallas Morning News states that the tax savings for the average employee of Toyota if they decide to uproot from California and come to Dallas is huge.   The report finds that the tax savings for a mid-level 40-year old employee making $75,000 will be over $200,000 for the rest of his or her life.   For the corporate executive employees, their personal tax savings could be as high as $1 million for the rest of their career.     The move is about the cost of doing business in Texas.  And more moves are scheduled.

–          Dallas Morning News, April 30, 2014 (excerpts)

Corporate Giants Leaving California

In both 2012 and 2013, Texas was ranked the best state for business in a survey conducted by Chief Executive.  California ranked 50th both years.   Last year, CNBC ranked California 47th on the same measure while Texas was ranked 2nd.    And one of California’s most frequent visitors is Texas Governor Rick Perry, encouraging and persuading other businesses to move to Texas.  Toyota is just the latest move to Texas.    Others will follow.  Over the last several years, corporate giants such as Nissan, Campbell Soup, Chevron and Comcast have all left California due to high taxes.   In fact in 2012, California lost 5.2 percent of its businesses.  The unemployment rate for Texas is 5.5 percent while California’s rate is 8.1 percent.   

–          The Daily Caller, April 30, 2014