S Corp Less than 25% Ownership

[Ricky Gonzalez]

I’m working with a loan officer who does not want to include my part time income from an S Corp where I own 20%. The loan officer is saying that because it’s from a business that I partially own, their underwriter will ask for financials from the business and take into account the profits and losses for the last two years.

I argued that because I only own 20% (which is less than the amount to qualify for self-employed) the business financial should not be taken into account at all and my part-time income (which I’ve been receiving for over 2 years) should be considered without question.

Can someone help clarify this situation?

I’m confused as to why company financials would matter if I don’t qualify as self-employed.

[Chris Mason]

Two year history of working BOTH your current day-job PLUS the S-corp that you own less than 25% of = both income streams should be counted. This isn't debate club where you get points for time spent at the podium, move on and find a new LO.

That being said, I do not have the full file in front of me, if your day-job was less than 2 years old and not full time, my answer would be quite different.