Independent Contractor

[Jaime Arellano]

Good evening,
I have a question about being an independent contractor. I've read that it's much more difficult to get loans as a 1099 and then a W-2 employee. I'm considered self employed/independent contractor and would like to know how true is that statement. Anybody who's is 1099 who has had that problem?

Thank you,
Jimmy

[Pat L.]

Hi Jaime...
Up here we have financed several 1099 contractors because of the lack of a W-2 to secure conventional financing for OO, none have yet moved to conv. financing.
However, according to the Mtg Broker we go through S-Corp's with issued W-2's seem to work but they do request 2 years history & they want the S-Corp to show a profit ????
In fact we are renting a $265,000 SFH we own (& they want to buy) to a couple from TN who moved back up here, but don't have a W-2 history.
She completed her PhD in TN so has only 1 year teaching at a local college & he was a 1099 Engineer, but is now W-2'd.
Before Dodd-Frank we (probably) would have held the note, but the rent shows a better return!!!