• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

Working two jobs is now easier to get a mortgage

January 2, 2019 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email
working two job just got easier for a mortgage

Fannie Mae and Freddie Mac are starting to take a more balanced approach in the way they view mortgages.

The change about self-employment income not hurting your W-2 income is one such example of that. Here’s what you need to know if you have both income types are looking for a mortgage…

Up until recently if you were to carry two jobs one as your full-time W2 job along with side business that showed a loss on paper, the lender hit that loss against your income resulting in less borrowing power making it more difficult for you to purchase or refinance a home.

Both Fannie Mae and Freddie Mac now will allow you to use your normal W-2 income even if that loss is still happening with your self-employment business as long as your main income is the W-2 wages from your traditional job. The Schedule C income that is otherwise showing as a loss will no longer hurt your borrowing chances subsequently improving your borrowing power to purchase or refinance your mortgage.

The bank you’re working with not allowing you to do it? Get a second opinion. Not all mortgage lenders interpret guidelines the same just because Fannie Mae and Freddie Mac will allow the guideline. Remember the lender you select bears all the risk associated with granting your mortgage request. Some lenders chose to originate less risky loans. Others to hedge against that risk impose on mortgage borrowers’ overlays. These overlays are additional layers of credit risk built onto that lender’s policy that effectively says if you apply with XYZ Bank they’re going to force place more stringent requirements on the loan that you are getting so they can cover their own hide so to speak. These could mean any of the following:

  • Refusing to grant a loan unless your credit score is higher
  • Refusing to grant a loan unless your debt to income is lower
  • Refusing to grant a loan with a co-signor
  • Refusing to grant a loan with a loss from a side business

The above are just few examples of lender overlays. Some lenders will get tricky saying they have no overlays. What they fail to share is that while they may not have overlays, they have policies (same thing) which dictate what types of loans they will do regardless of the actual government guidelines.

 

It is unequivocally in your best interests to work with a lender that does not operate with such overlays or policies that limit your choices. You want a lender that is a full Fannie/Freddie seller/servicer which increases the likelihood your loan is originated to actual guideline. Moreover, work with a lender that is willing to push the envelope. How a lender may interpret a guideline could also work to your favor especially if you have a quirky or technical situation. It’s worth it for you to work with an experienced lender who is acutely verse in changing guidelines they evolve over time.

Looking to borrow money on a mortgage? Get a fast quote now!

Related Mortgage Advice from Scott Sheldon

  • Get A Mortgage Rate Quote

    If you are looking for a Sonoma County Mortgage, get a mortgage rate quote. Mortgage…

  • Best Mortgage Rate Quote Vs. Locked Rate

    Securing a mortgage loan today for a purchase or refinance is looking very attractive with…

  • Mortgage Rates Improve On Jobs Report

    Mortgages rates across the board improved today on the news of the unemployment rate falling…

  • Self Employment and getting a mortgage just got easier
    Self-Employed? It just got easier to get a mortgage

    Are you looking to purchase a home? Are you self-employed? The rules to make this…

Filed Under: First Time Home Buyers, Interest Rates, Loan Qualifying, Mortgage Shopping, Mortgage Tips & Advice Tagged With: mortgage payment, mortgage rate quote, mortgages, preapproval to buy a home, qualifying for a mortgage, refinancing my mortgage, Santa Rosa mortgages, sonoma county home buying, sonoma county refinancing

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window