Loan approval question

[Randy Dickerhoff]

Ok so I have been taking steps to move forward into REI. I was told yesterday by a lender that we would have issues being approved for a loan mainly for this reason. I own a business, we make great money through this business. In fact I could carry an additional loan to my house right now and be fine with the payment and all that comes with it and still save. However, I am classified under an s-corp so I am salaried the lowest possible for tax purposes and the rest I use is distribution from the business. Apparently Freddie and Fannie only will look at my taxable income and won't even consider the business. Are there lenders who will? Strategy ?

[Chris Mason]

Originally posted by @Randy Dickerhoff:

Ok so I have been taking steps to move forward into REI. I was told yesterday by a lender that we would have issues being approved for a loan mainly for this reason. I own a business, we make great money through this business. In fact I could carry an additional loan to my house right now and be fine with the payment and all that comes with it and still save. However, I am classified under an s-corp so I am salaried the lowest possible for tax purposes and the rest I use is distribution from the business. Apparently Freddie and Fannie only will look at my taxable income and won't even consider the business. Are there lenders who will? Strategy ?

 You should play with this. :)

There's also "Alt-A" options that will ignore tax returns and evaluate 12 or 24 months of business or personal  bank statements for income. Terms/conditions obviously wont be good as a Fannie/Freddie loan.