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Showing proof of income

So I started a contract position and can show proof of regular payment but I don't have a contract. Do I need this to prove income? by ingolfke977 from Fitchburg, Massachusetts. Aug 6th 2021 Reply

Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

Yes, contract employment is considered "self employed. To be counted as income you'll need to show that income on your tax return, and usually for 2 years. What counts as income is what you show after expenses. -I have a son-in-law that just started a similar situation.

Aug 6th 2021
Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,423 contributions

It depends. If your new contract calls for you to receive checks that are not paychecks and do not have any payroll withholdings deducted, then you are treated as a self-employed businessperson. This usually requires a two-year history of being self-employed. If, however, you are paid via a paycheck that would result in you receiving a W2 at the end of the year, then you would be considered an employee. Usually, a W2'd employee does not result in an underwriter calling for a copy of the contract. Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, OR & WA... In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ 480-889-9000.

Aug 8th 2021
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,703 contributions

Those who work on contracts versus a full employee are treated differently for mortgage financing guidelines. If you just started your first contract job, sorry, but you will be denied until you can show a pattern and history of contract work. Generally this is two-years. If you just started a new contract, but have a patterns and history of contract work, then we will take the previous two-year average as qualifying income. I lend in MN WI IA SD ND. Find me at - Cambria Mortgage, NMLS 274132

Aug 9th 2021
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