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My husband and I have a S corp that is not making enough money for us. We will keep doing business, but my husband has taken a full time job this month in addition to continuing to earn money from our business. I already have a full time job.
With either our previous two years combined income, or our income now after my husband starts his new job, we have more than enough coming in to qualify for the mortgage we need. We also have excellent credit, and only a car loan as personal debt.
We have two lines of credit in our business tax ID that have a total of 25K, which we plan to pay off this year.
Will our business debt be taken into consideration when our new mortgage is being processed? Do lenders care?
you should speak with an attorney,but I also have an S-corp and have business credit and personal credit,but I have never listed myself anywhere as self employed,I have always been an employee of the corporation,thus have never had any issues when buying my personal residences.
Now if you listed yourself as self employed and personally guaranteed the debt,it may show up on your personal credit,,with the underwriting standards these days I am fairly certain they will care...But if you plan to pay if off this year,buy the house after the debt is wiped in my opinion this is the best...good luck
My husband and I have a S corp that is not making enough money for us. We will keep doing business, but my husband has taken a full time job this month in addition to continuing to earn money from our business. I already have a full time job.
With either our previous two years combined income, or our income now after my husband starts his new job, we have more than enough coming in to qualify for the mortgage we need. We also have excellent credit, and only a car loan as personal debt.
We have two lines of credit in our business tax ID that have a total of 25K, which we plan to pay off this year.
Will our business debt be taken into consideration when our new mortgage is being processed? Do lenders care?
The business debt will not be included in your application. If the S-corp has been posting losses that may knock down your income figures (you can add back deprecitaion).
My husband and I have a S corp that is not making enough money for us. We will keep doing business, but my husband has taken a full time job this month in addition to continuing to earn money from our business. I already have a full time job.
With either our previous two years combined income, or our income now after my husband starts his new job, we have more than enough coming in to qualify for the mortgage we need. We also have excellent credit, and only a car loan as personal debt.
We have two lines of credit in our business tax ID that have a total of 25K, which we plan to pay off this year.
Will our business debt be taken into consideration when our new mortgage is being processed? Do lenders care?
They will go by what is our your credit report. If you have a business credit card, it may not report on your credit file. Usually, your bank or broker will go by your credit report and just use those liabilities. An underwriter may pick up liabilities from tax returns or bank statements, FYI.
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Business debt...
