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Question I own my company but I w-2 myself. I dotn want a ton of paperwork do I have to submit my personal and business tax returns?

by ecwirtner305 from Klamath Falls, Oregon. Jun 5th 2014 Reply


Greg Filzen (gfilzen@mtgcapital.com)
#198 ranked lender in California - 20 contributions

If you own 25% or more of the company you will have to submit both personal and business tax returns all schedules even if you pay yourself a w-2. The underwriter needs to know that the company is still profitable while paying you a salary and wants to see the 1120s and/or k-1s that are filed. If you are not an S Corp, LLC or other form of business, then they will still want to see your Schedule C for the business. As a Freddie Mac direct lender however we can limit this to just one year's tax returns instead of two years which often results in a higher income calculation. Please let us know If we can be of service. Greg Filzen, Sr. Loan Officer, Bluestone Capital 310-619-4700 or gfilzen@mtgcapital.com

Jun 5th 2014
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Andy Harris, CRMS (AndyHarris)
#13 ranked lender in Oregon - 25 contributions

Greg is correct, the agencies control lenders on requirements and all have to document ability to repay. If self-employed as noted, they will review most recent 2 years or at minimum 1 year under Freddie Mac (assuming you are looking for a conforming conventional loan vs. government insured). I would assume you are an S corp, which would primarily include your W2 wages and K-1 profit (or loss) when averaging income in addition to other items for your Loan Originator to review. Talk with a good Mortgage Professional and have them do the quick review for you prior to formally submitting all your data just to confirm the ratios and if they meet agency requirements. Not sure solicitation applies in these forums, but we are local and have access to 30 investors that compete to allow for more favorable loan terms, execution, and client-only representation- www.VantageMortgageGroup.com

Jun 5th 2014
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#2 ranked lender in Florida - 2,240 contributions

Once they see you are self employed you will need a minimum of two years tax returns and possibly business as well depending on the #'s.

Jun 5th 2014
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

If you show yourself as owner, you may need to show company income and expense figures. If you list yourself as an employee in a management position, and your W2 income, and the monthly credit debt (even if used for business) meets the debt ratio guidelines, you may only need current paystub and 2 years of W2 income.

Jun 5th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,550 contributions

If you own more than 25% of your business, which it sounds like, then both personal and corporate taxes for the past 2 years would be required. Freddie Mac only requires one year tax returns, however each lender has their own guidelines above and beyond Fannie & Freddie.. it's these additional guidelines that might require 2 years even though Freddie only asks for one.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres 480-287-5714 WilliamAcres.com

Jun 5th 2014
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