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Updated about 12 years ago, 11/27/2012

User Stats

2,210
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2,109
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Mike H.
  • Rental Property Investor
  • Manteno, IL
2,109
Votes |
2,210
Posts

How does this job change affect qualifying?

Mike H.
  • Rental Property Investor
  • Manteno, IL
Posted

Need some help here. Am I going to have a problem qualifying for loans
with my recent job change?

I recently left my job as a Business Analyst and went from being an employee to a contractor. I'm still a business analyst in IT and am actually working for a real estate firm. But I am no longer getting a check directly from the company.

Now, the company I work for pays a consulting firm. I then invoice the consulting firm and they pay my corporation. My corporation is then going to pay me a salary out of those funds. I will also take distributions over time for the remainder of the funds - depending on the circumstances.

This is typically referred to for contracting as corp to corp. Have never done it myself though.

Does anybody know how this will affect my loan qualifications in the future?
Am I considered self employed? Will they use my previous tax returns as a basis for my income? Or will they require me to wait 2 years to qualify (self employment?)

My company is going to pay me the same salary I was making before. But there will be more than that coming that I will likely take out as distributions (lower taxes).

Anybody ever deal with this change? Anybody know how I will be viewed by banks? I'm assuming a local bank will not have a problem with this since my income is going to be quite a bit more and they can see everything. How about conventional loans though?

I have 2 spots left and need to know if I can still use them....

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