What's better for financing w-2 income or Self-Employed?

My situation is simple, I work as a consultant and gearing up to make my first MPH purchase and thinking ahead on qualifying for that first commercial loan. I’m considering converting my employment from a corp to corp contract to a w-2. This would have serious tax impacts I may be able to smooth over from other avenues. But I want to make sure I do everything I can to qualify for that first loan.


The move to W-2 would make sense if you have a really inconsistent income history over the last 36 months, but then again it takes time to show stability and the banks may not care about your recent move to W-2 as they’re still stuck looking at your past income stream…

I would try to keep your arrangement the same before I went through all that headache and have to pay ~9% more taxes.

You should also look to target Seller Financing arrangements which are quite common and can offer attractive terms.

The best thing you can do is find a good banker that you can develop a relationship with in preparation for investing. Income is income just find the right banker to work with and forget the smoke and mirrors.

Definitely don’t change over your tax treatment just for purposes of financing. The recent change is likely to be a red flag for financing if anything and no sense in paying Uncle Sam any more than you have to.

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