Your S-Corp Mistake Is Getting Your Loan Denied

Switching from a sole proprietorship to an S-Corporation should not reset the two-year history required for a mortgage, provided you can demonstrate business continuity to the lender. The key to a successful application lies in meticulous documentation that proves the new S-Corp is simply a change in legal structure for the same ongoing business.

• Prove Continuity: Lenders will verify that the business ownership, industry, and core services have remained consistent through the transition.
• Provide Flawless Documentation: A complete paper trail is non-negotiable and includes past sole proprietor tax schedules (Schedule C) alongside new S-Corp returns (1120-S, K-1), P&L statements, and bank records.
• Maintain Stable Income: Underwriters will average your income over a 24-month period, looking for stable or increasing revenue across both business structures.

Read the full blog article here: https://www.iqratemortgages.com/blog/a-los-angeles-mortgage-with-a-new-s-corporation