Trying to obtain a mortgage as a software startup founder is comically brutal.
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It would appear this is a common problem! Thanks to all that commented and reached out. Appreciate it
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What the bank really said was: "I see you have
$XXX,000 salary, and it's W-2 for 2+ years, which is great. Unfortunately I also see the C-corp that you own a significant portion of had$XXX,000 loss, which taken together means you have zero effective income to service the debt."3 replies 0 retweets 12 likesShow this thread -
Which is, after all, perfectly reasonable from a lender's point of view. Or at least it's their prerogative to see it as reasonable, even if it does seem a rather narrow way to evaluate ability to service the debt.
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Of course, it's all driven by conformity to federal guidelines, along with the ability to sell the mortgage into the secondary market. And so I will now go wading into the private lending market, where federal guidelines can be merrily ignored. Hopefully, there not be dragons.
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A good word to know is “portfolio” lender, which means someone intending to continue owning the mortgage as opposed to packaging it for Fannie/Freddie. They have more flexibility w/r/t underwriting. (Still have a whack of compliance requirements, naturally.)
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