Qualifying with income from foreign employer

[Anonymous]

I've been working with the same company outside of the US for the last 7 years and an opportunity has arisen that would allow me to work from home in the US. My question is would there be any issue in regards to qualifying my income since the company is not a US company? I've been payed as a regular salaried employee with taxes taken out in local currency. My new pay arrangement would be as an independent contractor paid in USD with no taxes taken out. The position is a lower paying position but I'm choosing it because it allows me to move back to the US.

Thanks for any help.

[Autumnslight]

That may be an issue. Not exactly because the employer is foreign, but because from here on out, you're probably going to be considered self-employed. Lenders normally require two years worth of tax returns for self-employed individuals, and then average the income from those two years. I don't know how it'll work when you're newly self-employed though. Do you have a contract that spells out a guaranteed annual income? That might help, but I'm not sure. Credit scores, down payment, and reserves might play a much more important part in this than they otherwise would as well. You'll have to talk to a mortgage broker and see what their lender requirements are. There's probably some lender out there who can work with you, but it might be a matter of finding the right one.

[Anonymous]

It sounds like if I can remain a salaried employee that would squash the self-employed problem. 

Thanks for your reply.

[Autumnslight]

Maybe. But it could be that it turns out to not be that big of a deal in your case, since it's the same employer, etc. I'd check with a mortgage broker to get a better idea before you make any decisions in terms of changing or not changing your employment terms. Good luck!