+2 votes
asked in Mortgage by
I have been in my same job for 4 years but was recently converted into 1099 wage earner from w2.  Can I still qualify for FHA loans?

2 Answers

+1 vote
answered by (3.1k points)

Hi Mary,

Yes, because you did not change your profession you can still qualify for a mortgage.  What state would you like to purchase a home?  The Gustan Cho Team is with USA Mortgage and we have NO lender overlays.  This will make your buying process a lot less stressful.  I would love to help you further please feel free to contact me directly.

~Quiana Williams

Quiana@USA-Mortgage.com

PH: (760)440-8844

Click to download the USA Mortgage mobile app for faster service

0 votes
answered by (23.2k points)

The answer unfortunately is no, you cannot use your new 1099 income for qualifying for a home loan. You must show a two year history of collection 1099 income. The underwriter will need a two year history of how you file your 1099 income to the IRS before they can count it as income. I have come across this situation more than once. You can go from 1099 income to full time W2 employee and count that income after sending in your offer letter and pay stub to support that income. Please reach out to Mike Gracz on 630-659-7644 or email me at mgracz@usa-mortgage.com. Your path of least resistance will be to ask your employer if they will hire you as a full time W2 employee.

...