Anyone run into home based small business income verification issues?

[Anonymous]

I've got a side job that's based out of my home. Started the business two years ago, it's been based out of my home the whole time, and I've got two part time employees that work remotely. Everything is above board, there's nothing shady about the business.

I get paid as a W-2 employee and the finances/documentation are all cleared by my accountant. I recently had a bank (PenFed) start questioning my income for a personal auto refi, because the pay stubs and W-2s I provided (two most recent paystubs and last two W-2s) as proof of income for the side job have my address listed as the business address.

Haven't had any other lenders take issue with the business address being the same as my personal address, and I've used the POI for quite a few applications and credit products over the past two years it's been in business.

Anyone else run into this sort of issue? If you have, have you been able to do anything to ameliorate it?

[CountryLivin]

I also have a home business......all of my documentation from my business is a PO Box. I don't put PO Box on any info, I use the street address of the post office box and then put Ste#. My checks even have that address. You can also get FedEx and UPS packages delivered to the post office now.

[Anonymous]

Thanks, I think I might do that. The only thing that's annoying is that the legal physical address of my business is my home address, so while I can probably have my accountant change the address on the paychecks to the PO box address, it's not going to actually match the physical address that's on file with the state.

I don't know if banks check on business address, so it might be a moot point

[Anonymous]

They have shared office services like Regus that let you use their nice high rise offices as your mailing address.  I just looked it up for my state and it is $49/mo for that.  They have more expensive options if you need a receptionist or might need to use their conference rooms now and then.

But if it is just for the banks it probably doesn't matter.  I'm sure they have lots of home-based businesses they work with.  Way more common now than a decade ago.

[CountryLivin]

I have the same address on my business registrations, plus my home address....it looks almost like I have 2 locations.

[silver_idle]

I never really had that issue but its always best to use a different location for business address after you start building revenue. Some UPS Stores do offer mailboxes that you can use for a business address but keep in mind most banks and creditors do sometimes keep a database or even check the address itself (eg google maps) to see if its a mail service. So it would be best to use a company like regus, opus, or if you like me, go directly to the building itself and get a virtual office (or real office if you want to be away from home). Then change your business address with banks, creditors, the irs, etc., After everything is signed and agreed upon. 

[Anonymous]

1) Had this same issue with PenFed....like the OP .....I've had plenty of other creditors and financial and insurance companies 'appoint' me

as a fiduciary w/o a problem but PenFed gave me so much run around regarding an auto refi and Defender credit app (after approving the refi @ 1.99 and the CC @ 20.5k...they found every excuse in the book, requested everything under the sink. I just passed the rate wasn't that much better than the one I had and the same savings could be garner by adding a bit to the existing loan w/o the headache...the CC would have been nice for utili % but not a huge deal.

2) It seems you are causing a bit of confusion by classifying your as both a business owner  AND a W-2 employee regarding the same income...

is the income? Profit or Wages

is the location a busines or home?

Under that situation, it's going to bring extra vetting......

3) One thing I'd do if I were you is use a Mail Box Etc type place ( I know UPS bought out that actual brand but you get my drift) I like the locally owned private places, b/c

those guys are just small biz ppl like, you and I.

They don't sweat the small stuff, the prices stay about the same b/c they want to keep clients. I've been using the same place over 10 years, 3 owners...same price.

For $12.50 a month (I pay either yearly or every 6 months) I have a de facto mail room that comes up as a biz address b/c myself and other businesses are associated with address, so if you start tomorrow b/c other 'businesses' are there the address is already vetted by D&b and Google etc...

I can call and ask then to LOOK in my box and tell me what's there, actually read who it's from..is it a CHECK, throw that out it's junk mail etc...I have a key to go in as I please...

And 2 of the BIGGEST advantages

a) Your address can stay fixed...even if you move, so for credit purpose I'm stable, my DL, professional licensing all have a LONG TERM fixed address, which adds to credibility etc

b) When, I don't feel like visiting my box ( now I'm 15-20 minutes away), normally I go at night but sometimes I don't want to do the 40-60 roundtrip (it's still SoCal) I just have them mail it (they 've yet to ask for money for the extra service, not even postage) just had them do that yesterday I'll get it in either 1 day or 2 at the most (they also let me know my annual bill is due)

But there is NO WAY for deductible $150 a year I don't win, in the deal, they handle my mail 6 days a week and phyiscally DO STUFF on my behalf for $12.50/mo + I get a separate address please!

I'm ok with Regus etc (love them for the Bix lounge plans and office rental etc) but I think once the fee gets above say $20 it becomes a 'bill' that you might run into some lean months and cancel, losing your address and having to start over etc...much easier to have one CHEAP enough to always have that little change ...that's why I like to do the year and be done ( 6 months at worst)......

Some will say get the phone and mail at $99-$149/mo ...but again too expensive and dangerous to comingle an amount that 'might' become a bill one month split them between two places .....just trying to help avoid mis-steps and hassle, again another reason I'm not as fond of the UPS store COST compared to local Mom and Pop ( yes 1 owner may leave/retire but somebody always buys them out) 3 owners and I've only had one key

[Anonymous]

I would follow Gemini101's avoid, but I would avoid the big names.  There are databases of their addresses that lenders and merchants flag in their systems because they are known as being throwaway/temporary addresses.  Too much mail/credit card/identity theft fraud with those addresses.

If it is an independent mom/pop type shop (that isn't a franchise of the big boys) the address might not be in those databases.

---

@Anonymous wrote:
3) One thing I'd do if I were you is use a Mail Box Etc type place ( I know UPS bought out that actual brand but you get my drift) I like the locally owned private places, b/c

those guys are just small biz ppl like, you and I.

They don't sweat the small stuff, the prices stay about the same b/c they want to keep clients. I've been using the same place over 10 years, 3 owners...same price.

.....just trying to help avoid mis-steps and hassle, again another reason I'm not as fond of the UPS store COST compared to local Mom and Pop ( yes 1 owner may leave/retire but somebody always buys them out) 3 owners and I've only had one key

---