All Forum Posts by: Ellie Narie

 We have enough income to qualify for the loan, we just don't have the 2 years of tax returns, that's the only problem. However, most lenders don't require 2 years of return from regularly employed people, it's just the self-employed that need to report the 2 years. So we need to somehow get around the 2 year requirement. That's why I was wondering if he can hire me to be a "housekeeper", so that I can show banks that I have a "regular" job, that way they will only require 30 days of pay stubs from me. 

Okay, this may seem like a silly question, but what we're trying to do is figure out how we can get a mortgage loan to get a fourplex, but we are an unmarried couple, where one spouse is self-employed, and the other spouse stays at home with the kids (we share children). The problem is, we don't have two years of self-employment income. Even if we go the S-corp/W2 route, since the working spouse owns more than 25% of the S-corp, he will still be considered self-employed by the mortgage lenders. He cannot transfer any of the S-corp to me, because I do not have the qualifications to legally have any interest in the S-corp. Since I do not help him out with his business, I don't think he can legally hire me to "work" there either. 

However, I am wondering whether he can legally hire me to work as the "nanny" or the "housekeeper", so that I can try to qualify for a mortgage with my own "income", which would be "w2 employment" and not self-employment. We live together, and have kids, but we are not officially married, so would it be legal for him to hire me as a "live-in housekeeper"? Would this somehow be considered tax-evasion or fraud? We don't want to do anything illegal, but we're trying to look for loopholes to avoid needing the 2 years of tax returns.

Let's say that you want to buy land and build a fourplex, however, you are newly self employed, and you won't qualify for mortgage loans for another 2 years, since banks need a 2 year tax return history. 

However, a friend or a distant family member is willing to loan you the money for this. But, they don't want to set up a whole 30 year mortgage for you, they want their money back in 2-3 years. The relative would give cash as a loan to buy the land and build, and then 2 years later, you'd need to take out a real mortgage from the bank and pay back the relative. How would you recommend going about this process? 

 I researched a bit about this. Won't the mortgage lenders know that you own more than 25% of the S-corp, in which case they would still consider it self-employment? 

 Ah, I see! Interesting, I will have to look into it. 

I believe that the deadline to file as an S-corp has passed, so 2017 taxes have to be filed as an LLC. That would mean that it would take an additional year before qualifying for the loan.

Is the only option to wait it out? I was also researching about getting a co-signer, but I was really hoping to just get a loan without a co-signer. 

Let's say the individual just graduated from professional school, and started their own practice/business. They are a contractor and receive a 1099 form. Do they have to wait two years before being able to qualify for FHA?

 Not married officially, but living as married (and have kids). If a partnership agreement is drafted, would it be possible that only one person claims all the rental income? How complicated is it to draft this kind of agreement?

If an unmarried couple wants to buy or build a fourplex, should both of them be on the deed? Who would be allowed to claim the rental income? Let's say one spouse works and earns money, and the other spouse doesn't work or earn any money. They share children. Can the non working spouse claim all the rental income, even if they both would own the property? If not, can they put the property in just her name, while the working spouse cosigns for the loan? 

What's a good way to structure this? An unmarried couple who have kids want to buy/build a fourplex, one spouse works and earns money, one spouse doesn't. 

I'm interested in house hacking. In my area, it is cheaper to build than to buy, and there aren't that many houses to buy to begin with, because it's a small town. So, I'm interested in buying land, building a fourplex, and living in one of the units. How do I finance this? 

I looked into FHA, but they say that constuction-to-perm is only for single family homes. USDA is also only for single family homes. Do I really have to cough up the 20% down payment to do this? Or are there other options with a low downpayment?