Underwriting Tip – Borrowers Employed by Family Business

FHA – In addition to normal employment verification, a borrower employed by a family owned business is required to provide evidence that he/she is not an owner of the business, documentation may include:
         1. Copies of signed personal tax returns or
         2. A signed copy of the corporate tax return showing ownership percentage
Note – A tax transcript obtained directly through the IRS may be used in lieu of signed tax returns, and the cost of the transcript may be charged to the borrower.
FNMA – The lender must obtain copies of the individual signed federal income tax returns filed with the IRS for the past two years for the following types of salaried or commissioned borrowers:
borrowers employed by family members


Since relocating from Northern Michigan in 2007 I have lived in Garner (27529) with my wife Melanie and our four children. With personal production of 8MM in real estate sales across Southern Wake County I am considered to be a local market expert in the following communities: Garner (27529), Fuquay-Varina (27526), Holly-Springs (27540), Apex (27502), and Raleigh (27603, 27604, 27606, 27609, 27610)) which spans from downtown Raleigh to Willow Spring including Lake Wheeler. Call or email me, I’m here to help! Ricardo Cobos (919) 526-0183