Income Verification Question - Tricky Situation - 2 Separate Payc

[John Johnson]

I am concerned as to whether I will qualify based on my DTI when it comes to Income Verification because of the situation in which I get paid. For the last 18 months, my salary has been just over 60K per year w/ my current employer, but this month, I got a big promotion (almost double my current salary to 120k).

The tricky part of my situation, is that the promotion I got, is actually being paid to me from a partner (affiliated company) and I actually get two separate paychecks, both W2’s from each company respectively. Half of my time is spent working on duties related to my initial employer and the other half of my time is spent working on this other new side of the business through the partner company. My compensation from my initial employer did not change, basically the companies just agreed to allow me to expand my duties and the new responsibilities will be paid for by the partner entity.

5 years ago before I started working at this job, my employer entered into a long-term revenue-share agreement with the partner company (which is a separate entity w/ different ownership) to expand our capabilities and capitalize on a new product/offering that had a substantial market opportunity in our industry. Within the partner agreement, each company has different responsibilities within that agreement.

When I started this job 18 months ago, I was brought on to help grow the new segment of our business and throughout that time, most of my responsibilities were within the confines of what my current employer is obligated to do with the partner agreement and as a result, for the last 18 months I have been paid only my current employer.

However; with my recent promotion, my duties are now split between the two companies responsibilities and I am now paid equally between the two. As such, I now get two separate paychecks (w-2’s) from the two separate but related entities. The entities have separate ownership as well, but for all practical purposes, it is one company operating under the same roof with the same objectives. I have one supervisor who is responsible for managing my duties at both companies.

So here is my concern - I am concerned that underwriting will consider my second paycheck as a second job, and therefore not include the income b/c I do not have a 1 or 2 year history of that additional income.

The house I want to purchase is 500K and I have a 15% down payment saved and I can afford it with my new salary of both companies, but I will not meet the DTI criteria if the additional compensation from promotion is not counted. Any insight or recommendations would be greatly appreciated.