Issues with Day Traders qualifying for a Mortgage

Discussion in 'Professional Trading' started by NERVESASTEEL, Mar 14, 2009.

  1. I've been renting in Manhattan forever, but now am seriously considering buying. I have enough capital for a sizable down payment but am worried about Board acceptance and financing because of my occupation.

    Does anyone know what issues I should expect to overcome because I'm an independent Trader???:(
  2. lindq


    It will depend much on how long you have been trading, and the consistency of your results. These folks want reliability.

    If less than 2 years, then you'll likely have problems, especially with financing.
  3. For less then 200.00 you can start your own business and give yourself a job with that business
  4. This sounds like a clever idea.
  5. the1


    Exactly what you have to do. If you are a trader in the eyes of a lender you are a gambler. If you start and LLC and trade through your business you are a businessman. Traders can't get a mortgage -- simple as that. Start and LLC and list your occupation as "investor." Problem solved.

  6. set up your office in the newly purchased apartment and use 25% of the mortgage as a write off.
  7. oraclewizard77

    oraclewizard77 Moderator

    See this is how you want to trade. Also, you could buy or start a small business on the side.

    All money spent on the business is deductible from taxes.
  8. Be VERY careful with this. I know someone personaly that got audited and hammered on this deduction. The Auditor showed up at his house and measure His Desktop and that SqFt(age) % to the overall % of the house and that was the max he could claim. IRS isn't screwing around with the Home/Office Car/Work deductions anymore. Speak to a CPA.

    But for a Mortgage definately be a businessman not a Trader.
  9. nitro


    Just pay for the house in cash. That's what I am going to do.

    However, many traders will tell you that you are better off renting and leveraging your $ on trading. I just want a stable environment for my daughter.
  10. Even in this down market, a decent apartment in NYC goes for well over 1M. I want to keep as much of my bank as possible, while capitalizing on this investment opportunity.

    The LLC sounds good! And I would think if you designated an entire room for your office, that you should be deductible! But I'll talk to my accountant. Thanks!

    Does anyone know of a site that specifically instructs a trader how best to setup their LLC???:)
    #10     Mar 14, 2009