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Answers (7)
- 132234
- Contributions:2
Thank you all for the advice. At the end of 2009 as a W-2 comissioned sales rep I was informed that my company was kicking all the sales reps off the payroll and that we would have to form corporations and obtain our own business licensing and insurance to continue to rep the product line. I did continue as a new business for 15 months and the company did earn money. Since the company was new I did not pay myself a regular salary during that time. I only paid myself one quarterly divident even though the company earned steady and reliable earnings. I was then informed that the company wanted independant sales reps to become "stocking dealers" with a large investment required. Thats when I changed to another product line that is draw based comissioned. Is their any lender that would take me?
- Deborah Garvin, "loanmonarch"
- Contributions:438
I think you may realize that most of the mortgage professionals here are wondering exactly what is missing in the employment scenario. I would certainly encourage you to talk with at least a couple different finance experts; however, if you are consistently getting a negative response I would suggest you find out exactly what the issue is.
Changing company's or product will not cause a declination. Changing an industry will. In other words, if you have a history of pharmaceutical sales and you started selling medical devices there would probably not be an issue. In short, you would still have your data base of doctors, etc. However, if you were in the medical field and went to selling pesticides in the agricultural field underwriting would have a very valid concern. Interacting with farmers is slightly different that with doctors.
If you are in a similar field...I suggest getting a new lender.
Changing company's or product will not cause a declination. Changing an industry will. In other words, if you have a history of pharmaceutical sales and you started selling medical devices there would probably not be an issue. In short, you would still have your data base of doctors, etc. However, if you were in the medical field and went to selling pesticides in the agricultural field underwriting would have a very valid concern. Interacting with farmers is slightly different that with doctors.
If you are in a similar field...I suggest getting a new lender.
- Bob Willett, "SacRELender"
- Contributions:194
I would be surprised if the change of product lines was the issue. It's more likely that when you changed product lines you also changed your employment structure. I've seen this a lot; a person will go from a 1099 (effectively self employed) to a W-2 commission structure to a salary + commission structure – or some variation of this. Then you get into reimbursed expenses v. expenses on the 2106, etc. and it can be a real hassle. If the income after expenses has always been there a good loan officer should be able to spell it out for the underwriter, but that won't guarantee an approval today.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Self-employed or 1099 employees loans are based on their Adjusted Gross Income (AGI). W-2 employees are based on their gross income. Most lenders require S/E & 1099 employees to provide their last two years IRS tax returns. Your 1099 income has not been established for that period of time, which makes it more difficult. Best wishes.
Happy Holidays, Rudi
Happy Holidays, Rudi
- Andrew Adams, "203K Specialist"
- Contributions:9349
One of 2 things 1. More to the employment history 2. The lender you were working with lacks experience.
- Mark Nehs, Wisconsin, "WI Mortgage Lender"
- Contributions:250
Must be more to the story. Is there a change in the base and commission part? For example, if you are all commission now and in the past you used to say have a $60,000 base and like $20,000 in commission we tend to only count the commission part and average it over 2 years.
Not sure but I would just try another lender.
Not sure but I would just try another lender.
- Shawn Ryan Rosa, "sryan1980"
- Contributions:493
Of course there is. You can apply for any mortgage program with commission-based income. The banks will simply try to determine if your particular income is steady and reliable. If you make $100,000 every year on commissions, they will look at is as steady income. If you make $100,000 one year and $50,000 the next, they make average the two years or simply feel that you income is unreliable and not approve your loan request.
Is their a mortgage available for comissioned sales personel?
I have been turned down by my VA and the USDA even though I have money in the bank and no credit blemishes. The problem appears to be that I have changed product lines 14 months ago and I now do not have two years of employment history with the present product and they will not consider my previous comissioned sales because it is a different product line. Why is it that an applicant with imperfect credit and little money working at a fast food for 2 years can get a mortgage but an business professional who has been faithfully paying in rent over double what the mortgage would cost can not get bought over a stupid technicality? I have not been able to find a funding source. Anyone have any ideas?
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