Same salary,W2, same job, etc. for 4yrs but I am now owner of same company. Qualify for va loan?

[Anonymous]

Have had the same job for 4 years but now happen to own the company as of  Jan 1 2015.  I was W2 before the buyout and will remain W2 with the same salary after with pretty much the same job responsibilities.  I had full p&l responsibility before I just now happen to own the C-corp that will be taxed as subchapter s.  The company has been in existence since 2002 but due to ownership everyone wants to look at it like a new company.  Revenue for company is just under $3M.  Will underwriting make an exception under the "self employment" rule in this case?
Note:  I am a veteran and qualify for VA loan.  Credit score is low 700s.  Post BK7 4 years.  Own current home with equity, no lates, no lates or delinquent post BK.

[ezdriver]

I'm not sure what "exception" by underwriting to which you refer. However, the fact that you own the company that issues your W2 will necessarily require both business and individual tax returns for at least two tax years ... maybe more. I had to produce five years of personal and business tax returns.

[Anonymous]

Thanks for the reply. I guess by "exception" I am referring to is the typical requirement for being "self employed" for at least 2 years before qualifying for a mortgage as a "self employed" applicant.  I wasn't sure if the W2 status from the same company for 4 years (even though I now own the company) would trump the 2 year seasoning period, etc.  Thanks again.

[Revelate]

---

@Anonymous wrote:

Thanks for the reply. I guess by "exception" I am referring to is the typical requirement for being "self employed" for at least 2 years before qualifying for a mortgage as a "self employed" applicant.  I wasn't sure if the W2 status from the same company for 4 years (even though I now own the company) would trump the 2 year seasoning period, etc.  Thanks again.

---

Socialize it with a number of LO's.  May need to look for a portfolio lender or similar if none of the standard ones are willing to play ball; if you're chasing a jumbo it's probably much easier, might even be able to do something kinda "dumb" and get a jumbo loan and pay the penalties on a low balance too bearing in mind I don't know if this is possible under 417K with any of the lenders that are in the jumbo space.

Your situation isn't unique but it's not common.  In the current market someone will be willing to give you money assuming your scores and what not are in line, but you're going to have to work harder for it than most of us.

[Anonymous]

The VA makes many "exceptions" to the 2 year employment rule, mostly due to the fact that many people leaving active duty have a job lined up, or recently started, and the VA doesn't demand they wait 2 years to apply. Your situation is similar, even though you have not changed jobs, you have recently converted to self-employed. They will ask for a couple of years of personal and business tax returns but the actual time-on-job requirements/new business rules are likely to be a minor issue that will be dealt with in a manual underwrite. You may run into problems with the lender itself; if so, just find another one that will work with you and the VA under the VA's relaxed/non-traditional rules.