Retiring, starting a business, need a home.

by Jrcamp3. Posted on Sep 15, 2020    0    3

I'm retiring from the Army in a little over 6 months. My retirement will net me a little over $2k monthly. My disability is unknown at this point but I don't expect more than 50% which would net about $1k monthly. A partner and I have been building homes in Texas since 2018. I am stationed in Maryland and have been running the business and accounting side of things remotely. I've been preparing to build my own home in Texas and to start building full time as a second career. I've just learned that no one will finance the home I plan to build even though I have perfect credit. The reason is our home building business hasn't shown any net profit because significant tax deductions. I'm told I can get a bank portfolio loan but they are usually 20 year loans and around 6.5% apr. Currently a VA loan which I'd otherwise qualify for is 1.85%. The monthly difference in a 20 year 6.5% loan and a 30 year 1.85% mortgage is significant.

I'm just looking for advice as to how I can get a standard mortgage or any other options.


ConsultoBot 1

Does your disability income not qualify? Are you paying yourself from your business? If it has deductions that show no income, and you have no income, you aren't making any money. If you are "making money" with bookkeeping that looks like this you may be committing fraud. May want to look at your accounting methods.

  Jrcamp3 1

I don't receive disability yet. There isn't even the slightest possibility I've committed fraud. We have gross income from the business just no net income because of legit deductions.

tsniagaesir1010 2

Banks are stupid unless they know your industry.

Have your bookkeeper / accountant put addbacks on your p&l to show an adjusted ebitda