Less Than 1 Year Self-Employed Florida Mortgage Lenders

Less than 1 or 2 Years Self-Employed Florida Mortgage Lenders 

Yes, you can get a mortgage in Florida if you are self-employed for less than one year.  Less Than 1 Year Self-Employed Florida Mortgage Lenders. Yes, that’s right, we have a mortgage program for the self-employed and contractors who have been self-employed for less than 1 year, as long as you can prove you have been in the same line of work for 2 years. The NEW self-employed Florida mortgage program is a unique opportunity in which a purchase transaction is completed by an eligible government entity that enters a structured financing agreement with qualified Homebuyers in business for less than 1 year to lock in a purchase price today and refinance or pay off in the future.

Less than one year self-employed, Florida Mortgage Lenders

• Loan to Value (LTV)• Eligible up to 95%
• Credit Score• 580 Minimum • < 580 considered on case-by-case basis
• Qualifying Income Options = Full Documentation (1 Year) OR Use Assets as Income OR Bank Statement Only Income OR Use 1099s + Bank Statements for income.
• Loan Amount Lending Limits Below Standard Balance, High Balance considered on a case-by-case basis
• Credit • One (1) tradeline with at least 12 months of satisfactory history. Alternative credit may be acceptable.
• Homebuyer Eligibility = U.S. Citizens, Permanent Resident, Non-Permanent Resident, ITIN 

Program Overview

DreamBuilder is a unique Housing Empowerment Program in which a purchase transaction is
facilitated by a HUD-approved non-profit government entity that allows prospective Homebuyers
to enter a Structured Financing Agreement to ultimately transition to entering homeownership.

General Eligibility 

• Purchase only
• 30-Year Fixed Rate Standard and High Balance
▪ High Balance is available on a case-by-case basis with prior approval.
• Primary Residence for Homebuyer

Rent or (VOR) 

12 months of documented 0x30 payment history (in good standing, no prior evictions or late
payments, and no balances remaining upon termination of the lease agreement) is required.
• Property Management Company: Fully completed VOR
• Private Landlord/Private VOR: Document 12 months of payment history (cancelled checks,
bank statements, or a ledger of payments from the landlord through a third-party source (subject
to approval from the underwriter)).
• Renting from a Relative: Cancelled checks or bank statements are required
• Electronic Payments: Alternative methods of documenting housing history, including electronic
payments (Venmo, Zelle, PayPal) are acceptable with a complete history documented.
Cash payments can be verified by a VOR (even with a private landlord) if one of the following is
provided:
• Copies of cashier’s checks for the most recent two (2) months
• Three (3) months’ bank statements showing money going to the landlord
Note: If the Homebuyer is unable to properly document the above, an exception may be requested.

Additional Parties 

Persons not on the loan, such as a non-purchasing spouse, may be added to the lease/contract, and
title per agency and state guidelines.

Appraisal & Property 

• Full FHA appraisal required; Open Mortgage Wholesale will order from an AMC approved for the
DreamBuilder program
▪ Appraisal must be marked “as-is” at the time of purchase, or have a completion cert/1004D if the 
property was “subject to” repairs or completion before purchase
▪ Appraiser must certify that the subject property meets FHA minimum property requirements;
No health, safety, or adverse conditions can be present
▪ Subject property must not have commercial influence, be considered a “working farm,” or have
commercial agricultural income potential
▪ Appraisal must indicate the property condition as C1-C4; C5 considered with exception review
▪ A Property Condition Disclosure (or equivalent) is recommended for all transactions
• Automated Valuation Model (AVM) required
▪ AVM value must be within 10% of the full appraised value
▪ Any appraised value greater than ten percent (10%) in difference from the AVM value is subject
to a desk review, or a counteroffer to the property purchase price.

Assets & Reserves 

• Homebuyers must document sufficient cash/liquidity to consummate the transaction, including
The following:
▪ 1st Payment Due (lease/contract payment and taxes/insurance)
▪ Closing Costs, including title fees (per title fee sheet) and DreamBuilder fees
▪ Sufficient down payment funds (minimum 3.5%)
▪ Note: Additional reserves may be required to support an exception or meet certain program requirements
requirements, contact your Account Executive for more details
• Assets must be documented with two (2) months of bank statements (most recent), covering two
(2) statement periods
▪ Assets must be liquid at the time of closing
▪ Business assets and investment accounts may be eligible
▪ Gift funds are acceptable for funds to close, but may not be used for reserves
▪ An LOE may be required to certify that the deposited funds did not come directly or indirectly from
the seller, real estate agent, lender, or any other interested party to the transaction
• The Homebuyer(s) are responsible for the following DreamBuilder program fees at closing:
▪ $1,250 program underwriting fee
▪ One (1) month complete contract/lease payment to be collected at closing
▪ 1/12th of the annual Program Management Fee
▪ $100 refundable security deposit fee
▪ $250 HOA service fee (if applicable)

Credit (1) Score And Payment History

• The minimum credit score is generally 580
▪ Homebuyers with scores < 580 or no scores may be allowed with an approved exception
• At least one (1) credit score from a major bureau is required
▪ If the Homebuyer has more than one (1) credit score, the representative score will be the middle
score when three (3) scores return, and the lower score when two (2) scores return
▪ Eligible credit reports must reflect a minimum of one (1) tradeline and provide at least 12 months
of credit history; alternative tradeline histories may be considered
▪ A soft pull credit report may be acceptable, provided a credit score (or “No Score”) is provided
• 12-month housing history verification required (0x30)
▪ Additional requirements apply if a foreclosure is present; see the guidelines
• Bankruptcy requirements:
▪ Chapter 7: Eligible if discharged at time of closing
▪ Chapter 13: Eligible if discharged OR if filed within 12 months of closing and documentation
Supports 0x30 payments since filing
▪ Note: All bankruptcies must be recorded on the credit report
• Foreclosure, Deed-in-Lieu, and Short Sale allowed if discharged or satisfied at least one (1) year
before closing
▪ Note: All events must be recorded on the credit report

Debt-to-Income (DTI) Ratios

• Max 50% PTI (housing payment to income) / 60% DTI (total debt to income)
▪ Exceptions may be considered with strong compensating factors
▪ Unless indicated otherwise in the guidelines, liabilities are evaluated per FHA 4000.1

Florida Home Requirements 

All properties in Florida require a 4-point inspection; any noted unsatisfactory items must be
fully repaired before closing. Additionally, a wind mitigation report is required.

Homebuyer Eligibility 

• U.S. Citizens
• Non-U.S. Citizens (green card and Social Security Number required)
• Non-Permanent Resident Aliens, including Deferred Action for Childhood Arrivals (DACA)
(Individual Taxpayer Identification Number (ITIN) and proof of ability to repay required)
• Non-occupant homebuyers (must sign the long-term purchase agreement or structured
financing agreement and meet all eligibility requirements; may not provide all qualifying income.

Property Eligibility 

Eligible• Single Family (Attached and Detached)• 2-Unit (Attached and Detached)• Planned Unit Development• Condominium (FHA Approval required)• Manufactured Home (Multi-Wide only)• Modular Home• Townhome

Ineligible • 3-4 Unit (Attached and Detached)• Cooperative Property• Mobile Home• Single-Wide Manufactured Home 

Property Inspection

A home inspection is required before closing for all properties listed in C4-C5 condition (according to
to the FHA appraiser) and for properties built before 1978. Inspections must be performed by a
licensed home inspector before closing. Inspection requirements include:
• All health and safety items must be addressed and/or repaired, as required by the inspection
• All major systems must be inspected, including HVAC, plumbing, electrical, appliances, siding,
major fixtures, and flooring
• Roof inspection (with a useful life expectancy of at least 10 years)
• Smoke detectors and carbon monoxide systems must be tested and certified as operable per local
building and health/safety codes
• Septic systems must have separate septic inspections performed, and they must be pumped and
inspected along with the drain field
• If electrical tests are not performed, it must be confirmed that power meters are functioning and
are not bypassed
Note: A Certified Home Warranty must be obtained when a home inspection has been completed.
This warranty is required for all properties where full inspections are performed.

Title Company 

The title company for the transaction must be selected from the Approved Title List.

Real Estate Owned 

A Homebuyer with additional real estate owned will be reviewed on a case-by-case basis and allowed
by exception only. Contact your Account Executive for details.

Renter’s Insurance 

Renter’s insurance is recommended for the Homebuyer but is not required. If obtained,
documentation must support that the policy is paid in full before closing, and the renter’s insurance policy
should include the following standard coverage:
• Personal property, liability, and additional living expenses
• Deductible should be standard for the policy, not to exceed $1,000.
• Any additional coverages that are considered standard for the marketplace of the subject property

Second Lien 

All DreamBuilder transactions are required to have a second lien with the following terms:
• Lien amount will be 1% of the lower of the purchase price or appraised value
• Forgivable in 10 years, amortized over 30 years
• No regular monthly payment is required, and no interest is accrued

Solar Panels 

Solar panels are acceptable, provided the solar panels are included in the price of the home and
financed as part of the mortgage. Leased solar panels may be acceptable on a case-by-case basis
only

Differences 

As stated above, the Homeownership Agreement is not a traditional mortgage loan. Some, but not all, differences
between this Program and a traditional mortgage loan are detailed below. Again, please review the
Homeownership Agreement for additional information before deciding to proceed:

1. The Homeownership Agreement is a financing arrangement whereby the Agency will own fee simple title
to the Home until the exercise of the Purchase Option or payment in full.
2. Homebuyers own the Home through a ground lease interest created by the Homeownership
Agreement. A fee simple title is transferred to Homebuyers upon exercise of the Purchase Option or
payment in full.
3. The Homebuyers will be required to sign a release of personal information so the Originator can send that
information to the Agency.
4. The Agency may obtain property insurance under a master policy, or the Homebuyers may select the
insurance provider. Homebuyers are responsible for insurance costs, which will be part of the monthly
payment.
5. The Homebuyers do not receive a Loan Estimate of charges from the Originator. If approved for the
Program, Homebuyers will get a summary of the monthly payment obligations and closing charges for
the agreement.
6. Homebuyers are restricted from leasing, subletting, or financing the Home, even for temporary uses.
7. Purchase or refinance requires payment of all applicable fees under the Homeownership Agreement.
8. The Homebuyers must have a documented housing payment history.
9. Mandatory homeownership education courses may be required.
10. Delayed closing or occupancy may result in the voiding of any Agency commitment.

Locations Include Every City In Florida: