W-2 vs Non W-2 Conventional Loan Financing

[Ian Sara]

Hey All,

Is someone able to highlight the main differences or challenges between financing an investment property with a conventional loan with W-2 income vs non W-2?  My wife owns her own business but is technically a W-2 employee based on how we have the business entity structured, however, we were looking into changing that after this tax year to a sole proprietor where she wouldn't be a W-2 employee any longer.  Will this make qualifying for conventional financing a lot more complicated, or if we can show that she consistently pays herself with distributions every two weeks like a W-2 employee would will that ease any troubles that come with being self employed?

Thanks!