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Tips for getting pre-approved when self-employment and job history are counting against us

I'm looking for advice on finding the right lender, or wondering if maybe we're just out of luck until our circumstances change.

Between my husband and I, we don't have a two-year job history, but he is full-time permanent and I am self-employed, so they are only using my husband's salary to calculate the pre-approval. (details below)

I'm wondering if there are lenders that would be better to work with from a self-employed perspective, or if they're all going to view us the same way?

My husband and I live in New Jersey (HCOL, high taxes), and the loan we are in the process of getting pre-approved for is really limiting our options. We are limited to looking at properties under $325k, probably closer to $300k, in a market where most single-family starter homes are $375k to $400k minimum (and still need work), and condos and townhomes in our price range get snapped up really fast, if they're available at all.

The background, for context:

This is a huge hit after we were approved for a house up to $450k last year. But since that first pre-approval, I left full-time salaried work for self-employment.

My husband was laid off in August 2020 after 2.5 years at his company. In February 2021, he found a new job in a new industry. At this point, he hasn't reached the two-year job history in his current position. The lender said he could have tried to stretch it if his old job had similar duties, but there's really no overlap.

I have been in the same industry since January 2012 - nearly 11 years. In February 2022, after 2.5 years at my last company, I left to start my own freelance business, and I've been over 100% booked the entire time. Even my conservative projections show me making more money in the first year than I did at my salaried job, but I am told this doesn't matter without tax returns to back it up.

submitted by /u/whomusic
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source https://www.reddit.com/r/RealEstate/comments/wy7frd/tips_for_getting_preapproved_when_selfemployment/

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