August 14, 2019 at 1:11 pm #56905Heather15Member
Hi all! I have not yet had my intake meeting but wanted to get a few things cleared up before I do so that I can start changing things around if needed. I currently rent my townhome from my father, who owns the townhome. He does not live with me. My rent is paid by direct deposit from my paycheck – so from my paycheck to his checking account. Bank statements can be provided to prove this. NACA rules state that if you are renting from a family member you have to have 12 months of canceled checks. Would the direct deposit statements suffice in lieu of the canceled checks?
I also pay my rent bi-weekly instead of monthly. Will this be an issue? Should I start paying my rent monthly by check to be on the safe side? And will this automatically make me 12 months out from being approved?
My one other question is that I have a W-2 job as my “main job” but I also work for Amazon flex part time which is considered being an independent contractor. I have been working for them for 2 years in November. I make about 20,000/year with Flex but I write off 17,000$ of it in mileage, phone, and other “expenses”. Will only that $3,000 I pay taxes on be taken into consideration as income – or will they consider the $20,000? Am I better off paying taxes next year and writing off less expenses to improve my DTI?
Really appreciate any help you all can give me! I’m prepared to wait a year if needed.August 14, 2019 at 1:32 pm #56907NelsontMember
I would think your rent payment situation will not cut it without a letter of explanation wet signed and dated by both you and your father. They need to see exactly where the money is going to and why. If you look at your statement or online transaction history each line item for both withdrawals and deposits will have a business name/business ID/address or location. A direct deposit from your employer will have the information on the line item they want for regular transactions because any transaction over a certain amount (I’ve seen both 100 and 500 as limits) will need to be explained with a letter wet signed and dated. They want to be able to see on your statement the business that took your money from rent. It sounds like to me it will appear as though you are not making as much as you say you are because you need to show your full pay stub being deposited into your account.
When you pay rent has no bearing as long as it is regular and can be officially documented. You probably won’t be set back but again you need a lot of documentation to prove it. Your father will need to write his own letter and wet sign it.
They may not consider any of your flex pay. I am not sure exactly how that would work but, I would be prepared to use only your w2 income. Anything else then would be a bonus. If you don’t have w2 income then you need to show stability. The thing about an independent contractor is the work is not guaranteed. I think if you work more or less regular hours with Amazon and have for 2 years then it may not be an issue.
As far as the write offs…I can see that essentially as bills. You are approved based on your gross income not your net.
Let us know how things go!August 14, 2019 at 3:23 pm #58214Heather15Member
Thank you so much for the feedback. I guess I will need to talk to my MC about the rent payments. My appointment is not until November. Do you think I should start just paying my father with a check once a month for rent just to be on the safe side? Will changing my payment method effect anything if they do indeed say the direct deposits are ok?
As far as Amazon – I have worked regular hours for them (approx 21 hrs/week) for the past 2 years. Although some weeks I may only work 18 and others I make work 24. My tax gross income for them has been relatively the same both years – within $2,000. I guess I won’t really know what they will and will not take until I go in. The other problem with Amazon is because I’m not a W-2 employee and an independent contractor – they will not provide me any pay stubs or pay documentation other than my 1044 (I think that’s what it is) Tax document at the end of the year. Nor will they write any letters of explanation – I’m sure of that. They do not want to be seen as an employer at all to anyone who does Flex. So basically, I would only have my tax income and my bank statements to prove that income. Would that still be considered? Wonder if anyone has ever tried with Amazon Flex pay and NACA.
I’ll let you all know how I work out in November!
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