FHA Loan Question - was 1099, now W2 with same company; also 4506-t question...

[Anonymous]

Last year, I worked as a consultant for a company, and was paid by a sub-contractor (1099).  On January 1, I switched to a W-2 employee with the same company where I was a consultant.

I've just been pre-approved for an FHA loan.  I indicated to the lender that I've been with the company since April of last year (which is when I started as a consultant).  They asked if I am a W2 employee, and I said "yes".

I'm wondering if the fact that I was 1099 for 9 months of last year is going to impact my ability to get an FHA loan?

Prior to starting with this company, I was a W2 employee for 6 years at another company.  I'm doing the same line of work now as I was doing as a consultant, and as I was doing prior to joining this company.

On an unrelated note - I haven't submitted my taxes for 2008.  I have filed an extension.  Will this impact my ability to get an FHA loan?  Will the 4506-t show that I filed an extension?

Thank you for your assistance.

[Anonymous]

I think that because all of your work history has been in the same line of work and your consultant gig turned into a permanent W2 position, you will likely be fine.  Just tell them that you started as 1099 and then went to W2 employee. No biggie.

As for the tax records, not sure what they will show. I'd assume system will just come back showing no available tax return info. for 2008 as of yet. 

P.S.

Where you from in Chicago?

[Anonymous]

Thanks for the speedy response!  I'll get back to the lender with that information, and keep my fingers crossed!

I'm currently renting in the west loop

[Anonymous]

Nice! I used to live across the street from Wrigley on Sheffield.

[DallasLoanGuy]

Up is right.

You will likely be fine. 'Might' need a letter from employer about the situation. <= mostly a formality though.

Everyone: Always 'over disclose' stuff like this to your loan officer. Better safe than sorry.

[Anonymous]

Thanks, DallasLoanGuy!  How ironic that you responded - I'm relocating from Chicago to the Dallas area, and that's where I'm looking to purchase.

I already have a letter from my employer confirming employment and salary, and that I'll be relocating with the company, so I don't have any problems with verification. 

I had been told by a mortgage broker that the FHA had cracked down, and that once I went from W-2 to 1099, if I went back to W-2, then I had to have been one or the other for at least the past 12 months, and that's not the case (only 1099 for 9 months, and back to W-2 for only 3+ months now).

[DallasLoanGuy]

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@Anonymous wrote:

Thanks, DallasLoanGuy!  How ironic that you responded - I'm relocating from Chicago to the Dallas area, and that's where I'm looking to purchase.

I already have a letter from my employer confirming employment and salary, and that I'll be relocating with the company, so I don't have any problems with verification. 

I had been told by a mortgage broker that the FHA had cracked down, and that once I went from W-2 to 1099, if I went back to W-2, then I had to have been one or the other for at least the past 12 months, and that's not the case (only 1099 for 9 months, and back to W-2 for only 3+ months now).

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There are a lot of loan officers out there that are selling the 'new loan' since subprime died.

You know... that New Loan => FHA..... Established in 1930s

 

 I was doing FHA when FHA wasn't cool!