Profile picture for walusi

Mortgage on 1099

I was on W2 for the past 4 years and i earn more than 100K+ per year for the past 4 years. I got a new job which is contract to hire in September and i am been paid as a 1099 staff. The agreement that  i signed with the company is that i will be hire at the end of March 2014. On 1099, my monthly pay is 20K.

I have a house that i like and the builder are ready to start building the house. But, i am having issue with the Underwriting stage of my loan because i was considered as a self employ person and asked to have 2 years of tax history. Despite the fact that i dont have any debt and a credit score at the high end of 700 and ready to put 40% down as the downpayment on a house of $250K, i still cant get a mortgage.

I cant wait till next year when i will become a W2 staff and i am just 3 month as a 1099 staff. The house that i like keep appreciating with about 4k monthly for the past 3 months and i will like to close the deal as soon as possible. 

Any solution or advice?



  • November 14 2013 - US
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Answers (6)

Profile picture for walusi
Houston, Texas.............

The builder informed that if i get the loan outside and not from their preferred lender, they will not contribute towards the closing cost and the closing cost might be as high as 10K.

Am tired.......................
  • November 15 2013
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walusi
Read page 4 of this FNMA Bulletin.

Look at the definition on this article.
And read the rest. You shouldn't have been marked as self employed on the application.
  • November 14 2013
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The fact that an Agency is involved complicates matters.

You need to find a FCU, Regional Bank, or Savings Bank to do a portfolio loan.

Where are you?
  • November 14 2013
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Profile picture for walusi
I started the new job in September (3 months ago) and i have been in the same line of job for the past 5 years.

Issue is the company will not give me a letter that i will become a full time staff in March (can become legally binding for them if they do) . But, i have an offer letter from the staffing agency that recruited me for the company stating that the job is contract to hire
  • November 14 2013
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q
  • November 14 2013
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When did you get the 1099 job?

Is the new job in same field and/or line of work?

You could possibly get by with a letter saying you go to w-2 in March.
  • November 14 2013
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