1099 Corporate Mortgage Approval

[John Ashley]

Good Afternoon Everyone!

I posted about this about a year ago, but unfortunately had a health problem (not Covid) that severely delayed me in acting. Everything is fine now, so I'm really hoping you guys can help me figure this out.

I've worked really hard over the last couple of years to get an 800+ credit score and almost all of my debt paid off. I even found a down payment assistance program with the City of Raleigh. I have an opportunity to buy 2 condos in a fantastic location from a family estate. The deal is awesome and I was planning to get a mortgage on just one of them for about 100K. I know that's small potatoes in what you guys typically look at, but I have larger plans in the future and need this to get me started.

My problem is that I am a 1099 employee. With all of my deductions, it appears as if I don't make much money at all. I thought that if I had a minimal guarantee from my company that it would suffice. My company agreed to give me one and write a letter stating so, but then it turned out that I needed to be a W2 instead of a 1099 with a guarantee. My company won't go that far and I can understand why.

At this point, here is what I am thinking. If I can't utilize the down payment assistance due to being a first-time homebuyer, then I would like to try to maintain that status for a larger project. With that, I am wondering if I should set up an LLC or something to get a mortgage with some of your sources for this and use the first-time homebuyer down payment assistance later. Will this idea even work?

By the way, for my first step in this real estate adventure, I am not looking to flip, but to live in one condo and rent out the other after some remodeling.

I'm really frustrated as I could make this payment in my sleep, but everything seems so rigid that no one is thinking outside the box.

Thank you in advance to anyone taking their precious time and consideration in helping me figure this out.

All the best to everyone in your endeavors!