I am being paid a 10k salary for driving the business from the company whose product i will be selling, but they are in Overseas. The newly formed LLC is me only at this stage? How can i overcome this as for a home loan i am required to be a W2 not a 1099?

1 Answer 1


In the US, W2 and tax returns are required to show ability to earn and history of income, which would be sufficient to pay off the loan being taken out. Usually banks use income to debt ratio of about 30% give or take.

For self-employed, banks are looking for much more robust history of earnings, given the inherent lack of security in income for self-employed people. You can probably find another job paying similarly to what you've been earning for the last X years, but can you build another business from scratch quickly? Probably not.

With no income history and no relevant evidence from your business, you won't be able to satisfy banks' quest to ensure that you can actually pay the loan back. Defaults and foreclosures are expensive, and even if there's a mortgaged property, most lenders want some assurance that you'll pay the loan back. In the situation you've described, I doubt any mainstream lender would consider you, you'll either need to wait for your business to become established and reliably profitable, or look for lenders willing to take extra risk (and pay much more in origination costs and interest to compensate them for that risk).

  • Just part of the cost of being a business...
    – keshlam
    Commented Jan 25 at 0:06
  • Thank you for your feedback and understand. However in this case i am guaranteed the 10k per month (not contract permanently) but instead of me being paid i invoice them and then they pay me, is there no way of setting this up that this should be sufficient? Commented Jan 26 at 15:24
  • Guaranteed, but no contract? How does that work? Guaranteed by what? What are they paying you for? It all doesn't make any sense at all. Banks are doing risk assessment. You're not matching any pattern, they don't want to deal with exceptions.
    – littleadv
    Commented Jan 26 at 16:01

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