Please help..I need advice...
Hello,Here is my story...I got pre-approved for a mortgage from 2 different banks. So then i went house shopping. I got an accepted offer on a house. So I went in to get my mortgage. I sit there for an hour and a half only to find out that I work for a family business, and i've only worked there for 4 months. Somehow if you work for a family business you need 2 years of provable work history of working for only your family. The loan officer said that if i went and worked at mcdonalds for 4 weeks and could provide those pay stubs that i could get the mortgage with absolutely no problem.This is ridiculous. The reasoning he said was that because kids were asking their parents to make fake pay checks from them from their businesses so they could buy a house... so they passed some regulations that are more strict for family..... that is insane. What would prevent me from photoshopping the name on my checks to mcdonalds, and giving the bank the phone number for a friend to act as my boss..... I'm saying why is this a rule just against people in familys WHEN ANYONE COULD DO IT....I googled this, and i can't find anything about it.... I need some help or im going to have to bail out of this offer by tinaskelton1961 from Dexter, Michigan. Apr 26th 2011
Todd Tholl (toddtholl@leader1.com)
#4 ranked lender in Iowa - 239 contributions
Were you employed for two years prior to taking the job with your family business? If so, this shouldn't be an issue.
Melissa Mason (mmason)
#8 ranked lender in Connecticut - 23 contributions
Here is the actual guideline from the HUD book 4155.1 Chapter 4 Section D:"3. Borrowers Employed by a Family Owned BusinessChange Date March 29, 20104155.1 4.D.3.aIncomeDocumentationRequirementIn addition to normal employment verification, a borrower employed by afamily owned businesses are required to provide evidence that he/she is notan owner of the business, which may includeo copies of signed personal tax returns, oro a signed copy of the corporate tax return showing ownership percentage.Note: A tax transcript obtained directly from the IRS may be used in lieu ofsigned tax returns, and the cost of the transcript may be charged to theborrower" The only way it would matter if you went from a W-2 employee to now working for family you are 1099 if you are a 1099 then the two year rule would apply, but if you are a W-2 then it should not be a problem.
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
Sounds like a lender guideline specific to that underwriter. As long as you are w-2 employee then you would have no problem obtaining a loan. If you went from w-2 to 1099 then you would be considered self employed which would require 2 years. let me know if I can help!
Carlos Alers (CarlosAlers)
#39 ranked lender in Illinois - 12 contributions
Thats because there is no such rule. Bottom line is that the LO's underwriter doesnt like your deal for whatever reason and is making you jump through hopes to get you approved. The only thing that they have a case against you for is if you have not been doing the same line of work for 2 years. So for example, if you were a tow truck driver, and now you work at McDonalds, that would not work for most lenders. If you want me to look at your deal call me: 815-690-8000.
Chris Corica (chris@myqcfunding.com)
#22 ranked lender in New York - 59 contributions
Since you were pre-approved by two banks simply go to the other one. I am not aware of this guideline but it may simply be an underwriting overlay they have added at this particular bank.
Patrick McCarthy (PatrickM)
#22 ranked lender in Ohio - 196 contributions
Hello TinaI agree. The underwriters are skeptical of your complete scenario. We only require proof that you have 25% ownership or less in the family business. If you are a W2 employee, you should be fine. Feel free to call on me. We can close in 2 weeks or less with a full loan package. If you like this post, please do not forget to click the "Thumbs Up" below. Thank you, Patrick McCarthy, Stonegate Mortgage, 614-395-2393
Ask our community a question.
Get an answer
Related Questions
