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Question for the Money Doctors

Question submitted on Feb 16, 2011.

Question

My fiancee and I just graduated from Optometry school May 2010 and really would like to buy a house. He owns his own practice within a Walmart and we have been he needs 2 years tax returns before they will approve us for a home loan. Do you know how we can get around this?

Answer

If your husband''s business is organized as a corporation and he pays himself a salary and therefore receives a W-2 at the end of the year, you may have a way around your predicament.  It would also help if you receive a W-2 as well.  Although not as prevalent as they were prior to the 2008 financial meltdown, some banks still offer loan programs geared toward professionals.  These programs generally only look to W-2 income when qualifying customers.

If you cannot find a program like I described above, don't worry.  Renting is a fine short term alternative.  With the recent changes in lending practices, many banks now require more of a down payment on a home.  Hopefully your rent is low enough to allow you to set aside money each month to put toward this down payment. In addition, as your household income increases, you may be able to qualify for a higher mortgage in another year.

Good luck with your housing search.


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