Mortgage Question (busn owner related)

I’m not a banker but this is what I’ve ran into:
Do you pay yourself a salary as a W-2 or just pass through income?

I wouldnt refinance. Rates are worse usually and the cost of it would make waiting a year make more sense. A refinance is going to cost at least $2500 probably

Banks much prefer W-2 income. You could take $100,000 in draws and they would probably prefer $80,000 in W-2 income. I don't know if they have an actual formula for that or how it works, lot of mortgage guys on here. But I just know low W-2 income is looked down upon from my experience.

ETA: But here's my advice, unless you want to give us 100% of your income information for the past 2 years then go talk to a local banker that does some portfolio loans which means their bank holds the load and they don't sell it off. The rates are usually a little higher but they have more flexibility in what they can lend. Rates are at historical lows right now so you can still get a great rate if you want to buy now.

Doesn't matter about w-2 or not they are going to have to go off of your 2019 tax returns until you file as that is your latest reported income. It is possible if you do quarterly returns to add those into your averages otherwise you will have to wait for 2020.
One other option is a non-qualified mortgage loan like a stated income loan, however rates will be significantly higher.

Will have to go non qualified mortgage product which is bank statement programs. The rate will be higher and you can refinance once you can show required income for conventional loan

You can go conventional -

Depending how long you have been in business - my company is based in FL and does a lot of self-employed borrowers. Our income desk would have review to give you a better idea.

Let me know you if you want more information britt . bowker @ tmf . mortgage