Yesterday I mentioned that there are some great programs out there for first time home buyers, and for others. The problems come when you try to qualify for them. My position as someone who is self-employed makes it a little trickier. For example, my income is usually proved by my tax returns for the past two years. My 2005 tax return shows only when I started, six months in, after getting my graduate degree. It is dragging down the 24-month average taken by combining my 2005 tax return with my 2006 tax return. This makes it look like my house payment alone would take up 50% of my income, even though this is far from the truth.

But, on the other hand, the bank also allows a year-to-date profit and loss statement. I turned that in. But instead of taking the 24-month average with it, they use it as an indicator of what I make. With that indicator, I make too much to qualify for Utah’s spectacular program. It’s the classic case of not making enough, but making too much. So I’m looking at the FHA loan program. However, that requires 3% down (the Utah plan is no money down). Which isn’t a bad thing. But since I’m paying off the car anyway, can I afford even more for a down payment? Technically, I can. But I’m not sure I want to raid my emergency stash, or my Roth IRA, to do it.

If you are looking for another option, the USDA offers rural-based loans if you buy in a rural community. However, while our desired home is kind of "out there," it may not be "out there" enough. So now we are actually considering an 80/20 piggyback loan as well. Which is not my first choice. Or even my second choice. But all options are on the table (except the interest only home loan — shudder). So now we’ll go through the pros and cons. And even consider refinancing two years down the road (which should be a piece of cake with tax returns by then) if we don’t get the interest rate or loan that we want.