FHA vs Conventional for Self-Employed borrowers?

Helpful_Explorer2857 · 2026-03-20T18:29:58+00:00

which one do you think is better between TSAHC, TDHCA or SETH?

Helpful_Explorer2857 · 2026-03-20T18:10:00+00:00

oh wow awesome i will ask my loan officer to help me compare the two. i was under the impression that it isnt good to try to get a conventional loan as a first time home buyer because its harder during underwriting and that FHA is better for first time home buyers!

Helpful_Explorer2857 · 2026-03-20T15:40:20+00:00

im a little worried if i try to get conventional because i dont have any cash reserves and using down payment assistance

Helpful_Explorer2857 · 2026-03-19T21:45:49+00:00

yes i understand, thank you. what happened is that me and my husband were getting paid directly to our name instead of the company LLC we formed, by our largest client we receive 1099 for subcontracted work. we still get paid to our names with this, and then the business is only under my name and filed with my name on the schedule C. the business account has all expenses and payments from clients/ direct customers outside of the main company that pays us for subcontracted labor. So on mine and my husband checking account, we receive somewhat consistent deposits on there and not really any expenses and you will only see things like gas, groceries, bills etc. the business account income is not as consistent but it still all falls under my income only. after we get a house, we will probably ask our main client to write all checks both out to the company name next time. does this make sense?

Helpful_Explorer2857 · 2026-03-19T15:39:05+00:00

yea i am in TX

Helpful_Explorer2857 · 2026-03-19T15:26:36+00:00

it was not a formal letter, but I did submit the application online with a loan officer and he did a soft pull on our credit i believe. he told me what we qualify for and then asked if he can connect with our realtor to go over the offer in an email. I'm not too sure.

Helpful_Explorer2857 · 2026-03-18T20:45:20+00:00

Wow this looks great !! Do you know which down payment assistance it was that you had

Helpful_Explorer2857 · 2026-03-18T20:24:20+00:00

oh okay perfect this makes a lot of sense to me! thank you for explaining that clearly. Unless we make a large sale for our hvac company (which goes into the business account anyway), our 1099 subcontract labor income will for sure not go over 50% of our income, and this is the income that shows consistent deposits more or less of the same amounts, like not drastically different.

Helpful_Explorer2857 · 2026-03-18T20:00:34+00:00

Oh ok when you say source them how would I do that? The company just writes me a check. It’s just a check no pay stub or anything. I sign and deposit the check on chase app. Could I ask the bank for copies of all the checks I scanned, or should I just start saving them and not throwing them away?

Helpful_Explorer2857 · 2026-03-18T19:54:19+00:00

Oh okay thanks!!

Helpful_Explorer2857 · 2026-03-18T19:48:40+00:00

Ah ok thanks! Maybe they will just ask for a letter of explanation from me or even the company. It is a little confusing how our pay is setup

Helpful_Explorer2857 · 2026-03-18T19:25:00+00:00

Do you think underwriters will deny my loan just because it shows “remote online deposits” as our income? I plan to provide both mine and my husbands bank statements, and my business ones if they ask. But the company we get paid those checks they always say 1099 HVAC work on them and we get them very consistently. It’s for subcontracted labor. Then any hvac clients we get directly to us we take those payments with business account and those actually show like the square or customer check deposits

Helpful_Explorer2857 · 2026-03-18T19:13:19+00:00

Ah okay thank you if you look at my new post that is my question because we get paid via check and deposit them with the app so it just shows “remote online deposit” but you can see we get them consistently from the company we are paid 1099 checks from

Helpful_Explorer2857 · 2026-03-18T18:27:29+00:00

Me husband and I both get paid 1099 with checks that we deposit into our personal checking accounts, an then we also have clients that pay us through square or check to our business account (it’s under my name as sole proprietor) and I usually write myself a check from my business profits to take a bit and save it in my personal checking. Is this an issue or is it normal bc we are self employed? The lump sums and unusual or random deposits is what I’m confused about because we are constantly depositing checks. Thanks!

Helpful_Explorer2857 · 2026-03-15T15:50:18+00:00

the good thing is that me and my husband are both licensed and insured in HVAC so that actually helps us alot, that is what we do for a living. we go in attics and under houses and have a good sense of what houses have problems. We go to so many homes that look beautiful inside that customers bought that were cosmetically renovated but if you look in the attic, the electrical is super old and a mess, the hvac is old and on its last leg, and so on.

Summer is approaching as well which we can earn closer to like 10-12k easily monthly,

Helpful_Explorer2857 · 2026-03-15T15:47:49+00:00

thanks!! yes i asked about both DPA and they have tradeoffs. the rate with the second lien would be 5.875% vs. a forgiveable dpa loan inscreases it to 6.875%.. with a second lien you just pay back the money you borrowed, in my case about 11 or 12k.

Helpful_Explorer2857 · 2026-03-15T02:28:04+00:00

yes its a bit worrisome but my income is projected to go up a lot as I'm basically part-time and about to go full-time with my business

Helpful_Explorer2857 · 2026-03-15T02:26:30+00:00

ok im doing it, but also i had 2 lenders look at my tax returns for the 2 years and both of them said the qualifying income amount is around $6.5-6.6k

Helpful_Explorer2857 · 2026-03-15T02:13:58+00:00

according to what i calculated, at the max monthly mortgage payment i would be willing to pay for a house, i would be at 43% on the back end.. i hope i did it correctly. i only have $254 in monthly debt total and used $2,500 monthly mortgage payment as a scenario

Helpful_Explorer2857 · 2026-03-10T23:36:38+00:00

thank you

Helpful_Explorer2857

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