Realtor navigates market as selfemployed buyer

“We reviewed the couple’s credit profile and identified that although his partner had no score, we could rebuild the credit and use the partners income to qualify. Within 30 days, the partner went from not having any active credit accounts or even a credit score to a toptier 821 score.”

Mortgage advisor: Brenda Wyatt, All California Mortgage.

Property type: Singlefamily residence in Adams Point, Oakland.

Loan type: Conventional refinance.

Purchase price: $625,000.

Loan amount: $593,750.

APR: 3.215.

Rate: 3%.

Background: Our recent borrower is a successful area specialist Realtor who spends his time helping others find the perfect home. So, when it came time to buy a home for himself, he knew how the process should go — or so he thought.

As a selfemployed independent contractor, like many Americans, his income was impacted by the pandemic. Selfemployed mortgage borrowers can apply for all the same loans “traditionally” employed borrowers can as mortgage lenders will generally consider any source of income that is “stable, consistent, and ongoing.”

Many businesses go through ups and downs; therefore, lenders calculate selfemployed income over two years.

After speaking with multiple lenders, many of whom he’d worked with for years, he was surprised to be turned away by most. In addition to the income complexities, his partner had no credit scores reporting with any of the three credit bureaus — TransUnion, Equifax or Experian. We reviewed the couple’s credit profile and identified that although his partner had no score, we could rebuild the credit and use the partner’s income to qualify.

Within 30 days, the partner went from not having any active credit accounts or even a credit score to a toptier 821 score.

With our underwritten approval letter, our agent-client started househunting and within a couple months, was in contract. We had their loan wrapped up quickly and in just the span of a few weeks, they landed the keys to their new home.