I’m working with a loan officer who does not want to include my part time income from an S Corp where I own 20%. The loan officer is saying that because it’s from a business that I partially own, their underwriter will ask for financials from the business and take into account the profits and losses for the last two years.
I argued that because I only own 20% (which is less than the amount to qualify for self-employed) the business financial should not be taken into account at all and my part-time income (which I’ve been receiving for over 2 years) should be considered without question.
Can someone help clarify this situation?
I’m confused as to why company financials would matter if I don’t qualify as self-employed.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
6y
Two year history of working BOTH your current day-job PLUS the S-corp that you own less than 25% of = both income streams should be counted. This isn't debate club where you get points for time spent at the podium, move on and find a new LO.
That being said, I do not have the full file in front of me, if your day-job was less than 2 years old and not full time, my answer would be quite different.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
6y
Two year history of working BOTH your current day-job PLUS the S-corp that you own less than 25% of = both income streams should be counted. This isn't debate club where you get points for time spent at the podium, move on and find a new LO.
That being said, I do not have the full file in front of me, if your day-job was less than 2 years old and not full time, my answer would be quite different.
Rental Property Investor · Reedsburg, WI · Member since 2011 · 1k+ posts · 857 votes
6y
I would agree with @Chris Mason. IF there is a reason that you want to stick with this loan officer, you could *try* the approach I used to take with our local building inspector who thought *his* opinion mattered more than what the "rules" said on our construction project we do.
He would tell my customers that "you need to do it 'this' way or 'that' way" which often was not accurate to what the code says (being a licensed contractor I know the code pretty well).
I told my customers to ask him "can you show me in writing what covers this issue so I can better understand it". Literally 4 times out of 5 he would say "go ahead how you were planning on doing it" - meaning that there was no rule, just *his* thought on how it should be.
Ask the loan officer to show or explain what rule covers that.