Question when obtaining financing...

Financing, Hard Money Lenders, Private Money
1

When acquiring a loan, do lenders just look at what you have under schedule C income? In my case for example, I am a Real Estate and also own a few rental properties. When I got denied a loan they told me my income was too low. But they only took into account what I had under schedule C which was my business income and not my properties. Can someone confirm this?

Edit: I was going to make another thread for a 2nd question but I will just throw in here in hopes for answers

Is it absolutely necessary to have two yrs of employment in order to obtain a loan? I have a client that will have 1yr of employment and her second yr she will nearly triple her income by June of 2014. She is willing to do 20% down on a primary residence(first time buyer) and has a high 700 Fico with less than 10% dti. Under this scenario, does she need to wait the two yrs of employment or can she do a profit and loss at some point during the 2014 yr?

2

Acquiring a loan requires proof that you can promise to repay. Also, you need to show proof that you have assets like a car or another property that can serve as your collateral. It is given as well, that the lender will look for your employment status at least two years to verify your ability to pay. But in your case, you may provide your tax information as a long time real estate agent as evidence of employment history.

3

It seems like you’re a good candidate for hard money financing because hard money lenders put way much more weight on your asset base–particularly other real estate that you own–than they do on such criteria that typical banks emphasize like your credit score, employment history, and income (schedule C or otherwise)