Really need help – call from lender 25 days before closing saying they can’t approve me based on this year and last years income as 1099

Hi all,

[NJ] South Jersey – First off I appreciate any one of you who can give me some insight and take the time to read this post. I'll try to keep this as short as possible.

So I'm 24 years old, was looking to purchase my first condo. Fell in love with a place, found a lender who i thought was a great guy from citizens. Got a preapproval for way over the price of the condo. I am currently making about 5k a month as of this year taking on a full-time role. Last year was part-time and the year before that, making just shy of 30k. I don't understand why I had to calculate my year to date so many times for the prequal and show all what I've made every month of this year if that didn't even matter in the long run??!? this makes absolutely no sense to me.

So I got the preapproval, he told me everything was fine. Have the 10% and 6k in closing costs etc to come to the table with ready to go in my checking account. Have calculated all costs and DTI and should be fine. Today at lunch time I get a call from my lender saying bad news, underwriter is going off your yearly average only from 2015-16 which is much lower than what you're making now and because you're schedule C 1099, we can't approve you based on that income.

Now, here's the real kicker. this would be no problem, switch conventional to FHA and be on my way. Well, the association I'm purchasing in let their FHA policy lapse in 2013 so I can't go FHA. My parents had a chapter 13 that was just dismissed this year so they can't sign as an unoccupied borrower (which i wouldn't really want anyway)

Now, I've had two home inspections at $300.00 each, and he charged me $680.00 for the appraisal which he claims already went through and was done even though I just paid last week. Also $1,000 earnest deposit.

What are my options here to not lose out on the condo of my dreams and all of this other money and time I've invested? My realtor has me calling a smaller bank tomorrow, not something on Citizen's scale, and said they may be able to work around some things. I don't even know what she means by this but at this point I'm willing to try anything…

If anyone can help me out whatsoever in any way, I would be beyond grateful. Thanks for reading this

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