Posted on: 02nd May, 2010 08:01 am
Hi, I recently (1 month) began working for a company and am payed as a 1099 contract employee, but I'm salaried. It is the same line of work I have been in for 20 years. My wife is also a 1099 employee and has 6 years of returns.
We are trying to buy a house and are finding it impossible to get a loan. We have excellent credit 770-780. We are looking to spend about ~200K for a house in KS and have about 10% down. Our combined income is around 110k, and we have very little debt.
Are there any lenders writing loans for 1099 employees without 2 years of returns?
Thanks,
Steve
We are trying to buy a house and are finding it impossible to get a loan. We have excellent credit 770-780. We are looking to spend about ~200K for a house in KS and have about 10% down. Our combined income is around 110k, and we have very little debt.
Are there any lenders writing loans for 1099 employees without 2 years of returns?
Thanks,
Steve
If you do not have income documentation for the last 2 years, it will be difficult for you to get a mortgage. The lender will want to check out your financial stability for the last two years and depending upon that you would get a mortgage. I don't think there are lenders who are giving loans to employees who do not have 2 years of returns.
That's what I am finding. My income for the last 2 years was through a normal job, not contract, and I obviously have those returns. The 1099 thing is new to me though.
Forgot to log in, the above post was from me.
One other question:
If I form an LLC and then pay myself with a W2, will the lenders then use that income or will it still be viewed the same as if I was a contract (1099) employee?
Thanks!
One other question:
If I form an LLC and then pay myself with a W2, will the lenders then use that income or will it still be viewed the same as if I was a contract (1099) employee?
Thanks!
Hi Smgarlett,
Your best bet is to try and get approved on just wife's income as she is the only one has the required 2 year history of being self-employed/1099.
Setting up an LLC and paying yourself w-2 will not work unless you commit loan fraud because the loan application has a specific box that is required to be checked if you're SE.
Your best bet is to try and get approved on just wife's income as she is the only one has the required 2 year history of being self-employed/1099.
Setting up an LLC and paying yourself w-2 will not work unless you commit loan fraud because the loan application has a specific box that is required to be checked if you're SE.
Thanks. Definitely not going to do that, just a thought.
Im trying to get a VA loan but having problems because in 2011 I was a partner and given a k1 and in 2012 i decided to just become a employee of the company instead of partial owner but doing the same job and basically i have always been self emplyed. Having trouble though getting a loan because of this, anything I can do.
Hi mihill,
VA loans are only available to the veterans. Civilians cannot go for this kind of a loan. You should speak to the local lenders and check out if you can qualify for some other kind of a loan.
VA loans are only available to the veterans. Civilians cannot go for this kind of a loan. You should speak to the local lenders and check out if you can qualify for some other kind of a loan.