CreditMcNugget

Fraud? How so? When is it fraud to get/pay a salary? You are only paying him to get around a loan guideline. That is deceiving the lender. No lender would do this deal..... You would absolutely have to have a 2yr history of working 2 jobs to count both incomes. Then you would have to disclose your relationship and the fact that he is working for a family owned business..... While your intentions might not be 'to deceive'.... The lender will see it my way. I appreciate your guidance. While "your intentions" may not have been to do so, I do think you jumped the gun here on assumptions, though, and to immediately call fraud was a bit off-putting and kind of rude. My husband does work with me in the business, but I initially was not going to pay him a salary and have all of the payment go under my name. But at any rate...thanks again... I read this the same way that DLG did..that you were looking for a way to circumvent lending guidelines by paying your husband a salary from your business. You didn't mention anything about him actually doing any work for you until your last post. As it relates to your question, they won't allow the income. I am going through the mortgage process now, and they won't let me count either my DWs bonus or my bonus because we have not been at our current employers for 2 years...and those in my eyes are much less of a red flag than what you were asking about doing. Why can't you use your income from the business to qualify? I would think that if you can show the two years of income it would be acceptable ( I will defer to Brian and DlG's expertise here) I know that if I can show two years of history of my own, it will be acceptable. Problem is - I just recently incorporated. While I am now going to be W2ing myself, the two years will start from this month. Before then, I was a sole proprietor and took a lot of deductions on my taxes (last year I wrote them down to a loss). I asked a question about me being in the same line of work (literally, I'm doing the exact same thing as I was doing before) but the tax returns don't support it. One of the ONLY downfalls to working independently/having your own business... At any rate, we've decided to continue to wait...

Fraud? How so? When is it fraud to get/pay a salary? You are only paying him to get around a loan guideline. That is deceiving the lender. No lender would do this deal..... You would absolutely have to have a 2yr history of working 2 jobs to count both incomes. Then you would have to disclose your relationship and the fact that he is working for a family owned business..... While your intentions might not be 'to deceive'.... The lender will see it my way. I appreciate your guidance. While "your intentions" may not have been to do so, I do think you jumped the gun here on assumptions, though, and to immediately call fraud was a bit off-putting and kind of rude. My husband does work with me in the business, but I initially was not going to pay him a salary and have all of the payment go under my name. But at any rate...thanks again...

Fraud? How so? When is it fraud to get/pay a salary?

So are you saying that he needs two years with my company? Or two years total? He has been on his "day job" for four years...

If you have a 2 full time jobs, can income from both jobs be counted? I ask because I have been trying to think of a way for us to get a mortgage. I had the bright idea that I can pay DH a salary from my corporation and we can get the house only in his name. Initially, I wasn't going to pay him a salary, but since he isn't on the articles of incorporation as an owner of the business, I think this may work. The only thing is...he has a full time day job as well. This would work in our favor as his income (when you add in the salary I would be paying him) would be more than enough to carry a mortgage. My only question is, would the mortgage underwriters allow for both incomes if they are both full time (I would be paying him for 160 hours of work per month)? I think this may be the only solution to get into a mortgage that I know we can more than afford. Unfortunately, mortgage underwriters hate non-traditional workers like myself. Any help/insight is appreciated.

So, how is it reflected if my tax structure has changed? Will my my W-2'd salary be taken into consideration or only my tax returns from prior years? For example, can I show my prior tax returns and my W-2 income (which is higher)? I was doing 1099 work before. Now, I will be filing a business tax return and receiving a W-2.

If I pay myself a salary (give myself check stubs, etc.) from my own corporation, how long do I have to do this in order to get a house? I've been 1099'd and doing self employment taxes since 2010. I incorporated on May 23. I plan to use software to generate a paycheck stub for myself and pay myself using direct deposit. How long do I have to do this in order for my income to qualify for a mortgage? I've been in the same line of work since 2010 - if that helps...

I applied for their loan and was denied. It was a while ago, though. I think it was about debt to income...

So I'm in the process of looking for a "traditional" job so that we can qualify for a mortgage. My ultimate plan is to be self-employed, but I don't want this plan to hold us back from getting a mortgage so I will explore getting back into that arena after we get a house most likely. Here's my working situation: Worked in job from November 2007 - April 2010. Lost job. Worked several "odd jobs" in between before starting to work exclusively as an Independent Contractor in October 2010. Now, of course, it's April 2011. If I were (hypothetically speaking) to get a job tomorrow, how long will I need to be on that job before I can apply for a mortgage or will it count for something that I've technically been "working" in the same field - even during periods of self-employment?

I would be grateful to clear 700...

Buying cars, living the "fabulous" life when I really couldn't afford it, losing my job and trying to survive...

Eating out & buying cars are our most expensive... We pay around $1250 per month for both cars. :-( We have cut back on our eating out, though. :-)

Ok, Thanks Marv! That's what I thought - I didn't want to rock the boat as we really do NEED a lower payment.

Hi, We are in the process of purchasing a new vehicle to save money on our car payment. This vehicle isn't necessarily a need, but it will save us about $120 per month in car payments if we trade our other car in. My question is - we have already been submitted to F&I and were actually dehorsed in the vehicle tonight. The car we're actually looking at trading into is a demo. The salesperson promised us that he would work the figures down on it. However, it seems that no negotiations were done on the price. When researching it online, I found that the MSRP is $33,270 and the invoice amount is $30,291. We signed a buyer's order agreeing to the price today. However, we have not "officially" started any paperwork. We really don't want to lose this deal as they have offered us $31,000 for our lease trade in that we owe $36,000 on. This puts us only $5,000 upside down. I would like to offer them $31,210 (over 3% profit). I'm a reasonable person and understand that a dealer needs to make a profit (even though they have holdback - which I don't even plan on discussing), but I also want a reasonably priced car, and I think a lower price will definitely help carry the equity and keep us at a better payment. Essentially, we need to buy their car, but I don't want to come off as a "lay down". I do know that trading when you're far out of equity is a tricky situation. Should I even bring up the new price? Since they've given me a trade appraisal, can they change that figure if I bring up my new price? Any insight would be appreciated. Thanks all!

Is there a difference if you are an independent contractor for the company? Do you still have to have two years?