All Forum Posts by: Michelle Svetlitski

That’s pretty much what I thought. Thanks for the tip, but the entire reason I asked about getting a mortgage was that we do not have the full $1 million in cash so buying and moving into the home and then taking cash from our investment home isn’t an option since we can’t purchase the home and move if we do not have the cash. 

He will be getting a W2 from an employer he worked for until he opened his own business. My husband and I are the sole owners of the new business which is an LLC and we are both on the payroll so he and I will be getting a W2 from the new business, but it will only cover the month of December. Total income from W2 sources will be roughly $170k. We will also have self employment income on our return from the months before we opened the LLC and will be getting three 1099s.

We sold our home to downsize after our youngest left for college, with the entire purpose so we could pay cash for the home and minimize our expenses. We obviously would like to buy something that costs less than the cash we have, but if we do end up going with a mortgage, we want the smallest possible mortgage which we will endeavor to pay off as quickly as possible. I am just trying to determine if a mortgage or HELOC is possible in our situation?

My husband worked an employee for a medical device company for 20 years. In September he opened his own company to become an independent distributor. At that time we did not consider the implications it would have for a mortgage. The company is an LLC with S corp designation, and he and I are both on the payroll. Our CPA said we are not self employed, but I believe we are still considered self employed for the purposes of getting a mortgage? We sold our home last year and moved into our investment property so we would be able to buy a house and pay cash when something came on the market. We are still looking, but realized we may need to take a mortgage if we can not find what we want in our price range. We have about $820k in cash for the home. If we wanted a mortgage for $180k to buy a home for $1 million is this impossible? Or could we get a HELOC on our investment home? The investment home is worth $475k and we owe about $78k. I just wanted to see if there is any possible way we can get a mortgage! We live in The Woodlands, Texas if that matters. Thank you!