Using three years income history to substitute for the two year income history requirement.

Steve from Palm Coast called into the show with another unique situation. Steve owned his own successful firm, which he sold in 2009. He then repurchased a firm in late 2010 meaning he had little income for that year. In 2011 his new firm was back up and now in 2012 that trend is still continuing. Steve called to ask Robert Palmer if the two year income history requirement is firm or if it would be possible to find a lender to take these factors into account and help him purchase a home?

If someone in this kind of situation were to apply at RP Funding this is the type of file that would land on my desk personally. It is a unique situation where it all makes sense and we are able to grant an exception. You have to be working with a lender where the ultimate decision maker is involved in the process. Personally the way I would look at the file and package it is by asking for 2009-2011 tax returns to show that prior to selling the firm there was a significant amount of income which dropped in 2010, but quickly went back up in 2011 to a similar income level to 2009. Actually just last week I had a file come across my desk where the borrower was a property manager working for a company making good money in 2009. In 2010 he opened his own business and made almost nothing. In 2011 his income level was back up and what we were able to do for him was average 2009 and 2011's income and use those figures for our two year income history. These are very unique situations, but give us a call at RP Funding and we will do our best to help you purchase or refinance your home!