I wasn't sure which forum to post this in. But this seems like it will work.
My business is considering electing s-corp status this year. It will save both my business partner and myself lots of money.
My business partner is concerned that going from self-employment income to salaried will make it harder to get a mortgage. I think it will make it easier. Total income will be the same ultimately -- one way it's all self-employment income (file K1), the other way it's salary (w2) plus dividends.
His wife will make 100K plus incentive bonuses, signing bonus, blah blah blah (she'll be a doctor) and has a signed contract (not just an offer letter). The job starts once they move to their new town and they would like to buy a house before she starts the job.
His salary if we elect s-corp status would be in the 80K range. Yearly dividends would be 100K plus. His wife's current salary at the position that will end this summer is 60K. I think they will have no problem, and their credit is good. But it's a bit complicated with the job changes, etc. so I wanted advice.
They will have 20% down and the most $$ house they would get is 425K but much more likely it would be in the 300K range.