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Denied consideration of income due to family business

I am working to get pre approval for a loan, and wanting to consider both my income and my wife's income. We are moving to another state and her new job is for a business owned by her family. She has no ownership and will be a W2 employee with a salary. We are being denied the ability to consider her income from her current job because we are moving to another state and she is not keeping her current job. We are being denied the ability to consider her income from her new job because it's a family business and they are requiring 1-2 years proof of income (two different lenders and told me two different things).Any advice? by floydianfan21820 from Cleveland, Ohio. Jan 11th 2022 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,636 contributions

Sorry to confirm some of the bad news, but you can't use income from a job we know you are quitting with a move. Then, working for family does bring up other guideline issues, as if it assumed it is too easy to fake income documentation when you work for family. Two years of tax returns are required when you work for family to prove you are not an owner. The person must also start working at the family job, and be able to provide 30-days of paystubs. The income is not automatically disqualified, but you will have to jump extra hoops. Working for a family member can be a great way to make an income, but when it comes to applying for an FHA loan or any loan, for that matter, you will have to go out of your way to prove that your income is not only real, but that you are not an owner of the company. Providing a few extra documents can help you prove your case and get you the loan you need. I lend for properties in MN WI IA SD ND. Find me at Wi-MortgageBroker.com - Cambria Mortgage, NMLS 274132

Jan 17th 2022
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