S-Corp Tax Move Destroyed Your Mortgage Approval

When you change your business structure, such as from a sole proprietorship to an S-Corporation, it can create challenges for a mortgage application. Lenders require a stable two-year income history, and this change can appear as if you have started a brand-new business.

• Lender Perspective: A recent change in your business entity is often viewed as the start of a new company, which can reset the clock on your required two-year income history.
• Proving Continuity: To overcome this, you must provide specific documents that demonstrate the business is fundamentally the same in its operations, ownership, and client base.
• Income Strategy: The way you pay yourself from the new S-Corporation, particularly using a consistent W-2 salary, significantly affects the income a lender will use to qualify you for the loan.

Read the full blog article here: https://www.iqratemortgages.com/blog/s-corp-switch--your-nevada-mortgage-how-to-get-approved