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We closed on our loan back in April, but it is not yet funded. We'll lender re-verify employment? I am now a 1099 for 4 months.

by tanyap777 from Springfield, Illinois. Oct 29th 2015 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

?? How can a loan have closed 4 months ago but not funded?

Oct 29th 2015
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Joe, we are building a home.

Oct 29th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

I'm guessing then that you closed on a construction loan, and are now concerned about the end loan when construction is done? Receiving 1099's means you are self employed. Traditional financing requires you to be self-employed for a minimum of two-years. This is because unlike hourly or salaried people, what is your income. We take what your reported, subtract out expenses, losses, etc, and whatever is left over divided by the last two years tax returns is your qualifying income. If you just switched to self employed (1099) and have been only there 4 months, you are going to have trouble. If you did a one time close construction to perm, you "may" possibly be OK.

Oct 29th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,927 contributions

I'm confused.. closing a loan means it's funded and the deed's are recorded.. and if that's the case, then it doesn't matter if you have changed positions or how you get paid.. they cannot undo a funded recorded closed loan. However, if your loan has not closed, then it could be an issue if you are now getting paid differently or if you have changed jobs.. lenders will do a verbal job verification just prior to funding to be sure you are still employed, so ti could be a problem if you have not actually closed.. 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, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 29th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,927 contributions

Ok.. There are different ways to obtain construction loans.. one is you actually get a loan to build, and then once an occupancy certificate is issued, you apply for a mortgage. The other type is called a "One time construction to permanent loan". With this type of loan, they will verify your employment prior to closing.. If you have this type of loan, then it could be a problem.. underwriting guidelines require you have a minimum of 1 year self employed income to qualify so long as you have been successfully in the same industry.. otherwise, you will need 2 years as a SE borrower.. Your loan officer should have gone over this prior to you ever obtaining this loan.. but regardless, this could be a deal breaker.. you should contact your lender immediately and inform him to see if there is a way around this.. 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, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 29th 2015
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When we closed, our lender said we were completely done and all we needed to do was pay the builder to take ownership of the house when it was finished. The lender said they would not have to meet with us again. I hope that helps. I'm not well versed in this...clearly.

Oct 29th 2015
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