employment question

[Anonymous]

hi - I have worked as a graphic designer with my employer for 4.5 years.  I am now relocating to finish my bachelor's degree (in graphic design) and will be working for my same employer on a contract basis under my own business name (SLP).  They are signing the contract on a year-by-year basis.

My question is, will my income now be considered a new small business and I'll have to wait the 2 years in order to qualify for a mortgage again?

[Anonymous]

yep, more than likely.  Once you are your own business, then the old job is no longer an employer, but a client.

The banks will want to see that the contract is not going to be revoked, that your "business" expenses are not going to eat up alot of your revenue, and that you are going to make it as a solo business.  Many people in similiar circumstances do not make it due to any number of situations (often because they do not realize that often running a business is alot more work than working at a business)

[Anonymous]

OK, thanks for your response.  I should mention I will also be going back to school to get my bachelor's degree in graphic design at the same time.  Does that make any difference...that I've been in the same field for 5 years?  (just thought I'd check)

And I was looking at the Homepath mortgage financing, seeing if those have the same requirements as an FHA loan?