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.