worried and need opinions

[Anonymous]

This is my situation -

Excellent credit (805) , no debt  , 21% downpayment funds so all that is well and good. DTI is like 15% .

Towards the end of last year , I took a better paying position ( full time 40 hours guaranteed )  but opted for a 1099 - primarily for tax benefits ( small company - provide no 401K/ medical is too high etc and I could do a SEP with 1099  and can buy and write off my own insurance etc etc )

Then found out in Dec 2015 about this whole 2 year rule with "self-employment" even though this is not really a typical self employed role since hours are guaranteed.

Switched to a W2 ( but still hourly = 40 hrs ) instead this year from Jan - employer agreed .

My file is going to be moved to underwriting - should I expect any issues? I am worried about the W2 hourly - is that going to be a problem? I work 40 hrs a week , except for 6 company holidays plus whatever vacation I decide I need ..Do get OT if I work extra.

So far they have asked for these things which have all been provided

latest paystubs ,

LOE from employer stating I was employed on 1099 but switched to full time .

[Anonymous]

I don't have experience with the exact situation you're describing, but with 800+ FICO scores, <80% starting LTV ratio, and such a low DTI - I would be shocked if there was a serious problem as long as you have a solid employment history and LOEs for anything that might not make total sense to the UW on paper.  Credit-wise, you are in an absolutely great position.

I find that the people who have the least to worry about in terms of credit often fret the most.

Best of luck!

[Anonymous]

Thanks , appreciate the response.

One more question if anyone can help . I did take about 5 weeks off last year while on the 1099 income ( unpaid ) to deal with some family stuff .

Even with that, I think my income is sufficient since DTI is low.

Does anyone know if they will ask for this? and if it is going to be an issue?

I did not tell them this - just sent the 1099 I got for last year along with my earlier companies W2 . I don't know how far they go back and verify all this.

I just thought about this last night - yes,  I am a worrier: (

[Anonymous]

The 1099 is your income for the year, they will take it and the previous 1099 and average them to figure your monthly income. Taking time off won't matter, thry just care about the numbers.
I've been in a similar situation, self employed, had to do the two year average. I was and still am stressed. We are closing Tuesday morning. It's been a loooong stressful journey. I had to sell my car to lower my DTI and even had to pay 2015 taxes that aren't even due till after closing.
It's been a wild ride but it will all be worth it when keys to your new home are in your hand!