Forgotten Your Password?

Need to Register?

Question Icon

Would like to qualify for a jumbo loan, but I am self employed. I am looking to switch to a S-Corp, should I do that after I purchase? Or can I do that prior to seeking a loan?

by trent09650 from Torrington, Connecticut. Dec 23rd 2015 Reply


Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

More information about your situation is needed before I could make any recommendations. Self employed is not a problem, but qualifying will depend on review of your last two federal tax returns - tax return net income (after some adjustments allowed under mortgage guidelines) is qualifying income. Generally, switching the way you file for 2015 is not a good idea if you are planning to purchase but the details make a difference.

Dec 23rd 2015
0
0
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

More info needed, but in general, your better off leaving things be as they are, and once you finalize your loan, then you can make changes for the next tax year.. As Phil said, lenders look at your SE Tax returns for the past 2 years, plus will require a current P&L to verify your income.. and it's the Net income that will be considered as "qualifying Income"... 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

Dec 23rd 2015
0
0
Subscribe to our news feed.