Zillow Advice: Mortgage - Will this qualify for a mortgage? http://www.zillow.com/advice-thread/Will-this-qualify-for-a-mortgage/471117/ Zillow Advice | Zillow Real Estate Hi Steve,Thanks for your ... http://www.zillow.com/advice-thread/Will-this-qualify-for-a-mortgage/471117/ Hi Steve,<br/>Thanks for your reply.&nbsp; We wouldn't convert the existing S corp to a C corp, but move one segment of the business to the new C Corp so medical expenses can be fully deducted and offer some tax savings.&nbsp; This is a tax &amp; accounting business, so we could segment out the bookkeeping to one business and the tax consulting to the other.&nbsp; All would be documented and reported on tax returns and our income wouldn't drop.<br/><br/>In regard to the business being the same, we actually relocated hence the foreclosure.&nbsp; This specific business was established in Aug 2009.&nbsp; Our prior business (same industry) was established in April 2007 but that was dissolved because of a failed partnership which lead to our relocation...it is very convoluted.&nbsp; We have pretty high income ($100K) and our ficos are in the 680 range so we have reestablished.&nbsp; We are just hoping we can purchase again this year. Wed, 12 Dec 2012 21:37:00 GMT http://www.zillow.com/advice-thread/Will-this-qualify-for-a-mortgage/471117/ 2012-12-12T21:37:00Z You should be eligible for ... http://www.zillow.com/advice-thread/Will-this-qualify-for-a-mortgage/471117/ You should be eligible for an FHA loan after 3 years meaning now. If your credit, income and asset qualified you can probably buy now. Regarding your business income, as long as you're showing a profit or gain on your Schedule E or C, you may be able to qualify. Let me know if you have any other questions and best of luck to you!<br/><br/>Paul Wed, 12 Dec 2012 18:26:00 GMT http://www.zillow.com/advice-thread/Will-this-qualify-for-a-mortgage/471117/ 2012-12-12T18:26:00Z As the saying goes, "The ... http://www.zillow.com/advice-thread/Will-this-qualify-for-a-mortgage/471117/ As the saying goes, "The Devil is in the Details".&nbsp; If you are converting the existing S Corp to a C Corp and that can be documented,&nbsp; the conversion should not hurt you. Then, if you can document that you own 100% of the new C Corp, most lenders will consider the retained earnings to be your income.&nbsp; The problem here is that the C Corp status may allow you to shelter income that up until the convversion would pass through to you and be usable for qualifying.&nbsp; To the extent that you would "lose" reportable&nbsp;income converting to C Corp status, that would lower the income that could be used to qualify.&nbsp; <br/><br/>With respect to the foreclosure, you should contact a lender in your area to check their guidelines. And given that it appears the foreclosure occurred while you were operating this business, you should be prepared to answer some questions about both.&nbsp; Wed, 12 Dec 2012 18:19:00 GMT http://www.zillow.com/advice-thread/Will-this-qualify-for-a-mortgage/471117/ 2012-12-12T18:19:00Z