So Complicated

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This topic contains 5 replies, has 2 voices, and was last updated by  IsThisMyTime 4 months, 4 weeks ago.

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  • #36574

    IsThisMyTime
    Member

    I initially signed up last year April 2016. I had my meeting with my counselor and had a date set for qualification for February 2017. I knew I was at least a year out from qualification due to late payments. I was fine with that. Everything was going fine throughout the year, until I had to quit my job in November 2016 to work from home. At that time, I took on a 1099 independent contractor job. I was advised that I would have to wait 12 months to show a year’s worth of 1099 income. BUT, I have found another position that I just started that is going to be W-2, employee paid, work again. During the time where I had to leave my job in November, I made some late payments. I am a parent to a special needs child, so I really did not have any other choice than to leave my job to work from home. I know that isn’t really significant when qualifying for a home loan. I just want to explain the reasoning for me switching to work from home.

    Well, I guess my question is, will I have to wait 12 months and show income from this job where I will be getting regular checks and a W2? Will I be back on track with qualifications. How many months do late payments put me behind? Every payment was made on time until I had to quit my regular. Now, I am so confused as to where I fall in the process. I was so excited but now…I just don’t know where to turn. I’ve scheduled a meeting with my counselor, but of course, its weeks away.

    PLEASE HELP

    • This topic was modified 4 months, 4 weeks ago by  TTrumble.
    #36582

    TTrumble
    Member

    Hello IsThisMyTime,

    Late payments, unless you can demonstrate that they were absolutely beyond your control, will reset the twelve month clock to zero once again.

    You left out the key element with regard to your change to 1099 status and back again. Was it with the same company or did the change in jobs also mean a change in company? If you stayed with the same company, the return to W-2 status may not cause a delay. You will have to wait until your appointment with your counselor to determine for certain.

    In the meantime, make sure to keep all your documents updated including pay stubs and bank statements to ensure that you don’t face any easily unavoidable delays.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #36583

    IsThisMyTime
    Member

    The 1099 was with a different company. I had to quit my job and leave and find 1099 work abruptly due to issues that I really had no control over. Which set me back with paying things. I have 1 maybe 2 30 day late payments that occurred because of it. I believe there is only one.

    So I just actually started with the new w2 company this month. I wanted to stick with the 1099 position but I thought that working and having a w2 again would not delay me. I was also worried about 1099 and writing things off. I know that write offs and deductions reduce the net income, which would in turn, reduce the amount of a loan that I would have to qualify for. So I’m slightly frustrated. But if the 30 day late payments will delay me, maybe I should just keep the 1099 and leave the w2 position alone.

    #36584

    IsThisMyTime
    Member

    I have confirmed with my auto loan company that there are 2 late payments on my account. Jan and Feb of this year. So I made 10 on-time payments with 2 lates.

    #36586

    TTrumble
    Member

    Hello IsThisMyTime,

    It appears that your more pressing and immediate issue may be getting your finances under control. While I certainly don’t know the details of your situation, you may want to start by setting and maintaining a strict budget.

    The everydollar.com tool may be of help. The basic version is free and is a part of the Dave Ramsey organization. While we have no connection to the Ramsey group, their program tends to fit very well with the NACA program.

    I hope that helps.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #36587

    IsThisMyTime
    Member

    They are under control, there were just instances that happened that derailed my goal. Having a strict budget did not change the fact that I had to leave my job, which set me behind.

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