Applying for Mortgage while moving from W-2 Job to 1099

[Jay Miles]

Hello,

I'm in a bit of an interesting situation that is currently impacting my ability to apply for loans. My current employment (W-2 job) ends this Friday, at which point I have a year-long non-compete before I can begin my next job (again, W-2). For the year inbetween I will be paid as a 1099 contractor, maintaining my same base salary during this time. My DTI is currently 23%. I have an offer letter I can share with lenders that stipulates all of this.

Unbeknownst to me, it seems this switch to 1099 temporarily will cause be a great bit of headache in getting the loans I was hoping to take out during this time. My plan was invest in 4-5 properties during my time off as I have the cash for the downpayments to do so. 

Any advice on how I could still receive mortgages in the expected range (20% down, 4.75%ish rate) during this time? Are there certain lenders who may be able to make this happen? Different products to consider?

Any words of wisdom to point me in a forward direction are appreciated. 

[Sarah Brown]

There are loan programs for self employed that are based off of bank statements.  The interest rates tend to be higher, but that might be a good option.