Purchasing a home on a Freelance Salary

Mortgage requirements continue to tighten, but one thing remains constant; buying a home on a freelance salary continues to be more difficult than on a regular salary. The number of freelance workers is on the rise thanks to a tough job market. As a result mortgage companies are seeing a rise in this type of application. So what can you do  if your  a freelancer looking to qualify for a loan this fall?

First you can provide proof of a down payment. It doesn’t matter whether it’s a gift from a family member or account statement showing the money sitting in a 401k/savings account. The important thing is being able to prove in a verifiable way that you have the down payment ready and waiting.

Second you can prepare for a tougher review of your application. Gather your tax returns from the past 3 years. If your income had a big jump in the past year be prepared to answer questions on why. When you work on a freelance basis one of the most important things your application can show is that your income is on the rise. They want to see that you’ve had steady income bumps over consecutive years.

Third be prepared to seek out local banks. Local banks are often willing to go beyond what’s on application itself and look at the person applying for the loan. Local banks are the go to place when new developments need financing, because they are willing to look beyond typical lending restrictions.

Getting a loan on a freelance income isn’t impossible but it’s important to remember the three points above in order make the process easier. If you have more question on home loans or qualifications be please be sure to contact Pat Tobin at pwtobin@metlife.com .

After the Tax Credit Ended

The expanded and extended home buyer tax credit ended almost a month ago and since then, many have wondered what happened to the market? If you’re one of the one’s that been wondering, wonder no more we have the answer!

In Back Bay from 5/5/10-5/27/10 there were 34 condos sold. Out of the 34 condos sold 20 of them went for under $620,000 showing that despite an expired tax credit there are still plenty of first time buyers out there looking to purchase a home. During the same period last year only 16 Back Bay condos were sold. So will the housing market fall off a cliff as some have suggested? It would seem at this time that it’s unlikely but it’s still best to proceed with cautious optimism. If you’re interested in taking a look at what has come on the market recently or would like to discus listing your home for sale, please give us a call at 617-449-3642.