Question
I am a teacher and my wife is a dentist who just recently took over my father's practice. Can we qualify?
The business was just handed over to my wife. Our combined monthly gross income is ~12,000 per month. We have excellent credit and we want to buy a $350,000 home. However, we are being told that because my wife was just given a dental practice that we will not be able to qualify her income. The business has been established for the last 40 years in the same location and the patient base has not changed. She worked for my father in the practice for 1 year before becoming the owner this last July. Since then the business has become even more profitable and it seems unreasonable that we would not qualify for a loan. Are we indeed getting correct information or is there some way around this obstacle?
1 month ago - 2 answers
Best Answer
Chosen by Asker
Your wife is now self employed so her income can not be documented for the required 2 years. Every traditional loan, FHA, VA, USDA, Conventional all require a 2 year history for self employed borrowers.
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by Noneya
1 month ago
Asker's Rating: 
Other Answers
The reason is that your wife's income has not been established. Does she have proof of income for the previous year? The problem is that quite often a dentist's or doctor's patients leave the practice when their familiar practitioner is no longer there. However, don't take one lender's word for anything. Shop around, but be wise in your quest. Don't let a lender talk you into a higher interest rate, for instance, because of a lack of verifiable income. You might consider having your father keep the practice in his name rather than removing his title immediately even though your wife will be handling his patients. He could simply write salary checks to your wife for a few months. Once her income is established he can transfer the business and accounts to her name.
by Cheryl G- 1 month ago