- May 21, 2001
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I am being forced to leave my appartment next month. I'm in a federal low income housing and I qualified using one of the exceptions (low income + student + married + filing joint taxes). Well I'm graduating (PhD Chemical Engineering) and will no longer be a student and will no longer meet the low income status. I am begging and pleading to stay another month, but I don't know how well that'll go. So probably by the end of May I'll have to move out. That gives me 2 months to find a new place to live.
I have a job lined up doing what I did for research at the company which paid for my research. They have an NIH grant coming in June which will provide guaranteed money for my salary (quite a good salary). The catch is that there is no extra money available until June to pay me. We had hopes to get the money in March so this whole issue wouldn't have been a problem, but due to some delays there isn't any extra cash to float me buy.
I'm in a situation where we really want a house. I'm in deep enough trouble with my wife for keeping us in the apartment this long as I got my PhD (we were going to move after the Master's). Keeping our apartment isn't an option and finding a new apartment won't be easy - especially for just a couple of months. The cost of moving all our heavy furnature and storing the furnature while we wait for a house is certainly a drawback of getting another apartment. Plus apartments are money pits, I'd rather have the money going towards my house.
So I need a home loan. I've got great credit scores, I've got a long term employment as I've been working for them for years, downpayment of any amount is not a problem, and I've got a guaranteed high salary. I just don't have paystubs to show the high salary - just the lowly student salary I've been on. So I'm not going to be able to get a decent home loan (US Bank loan officer didn't want to accept a promise of employment and wanted paycheck stubs). It would be a real shame to move into a crap house that we don't want to live in - when we can afford a lot better.
So my hairbrained idea is this: take my downpayment and draw up a formal written loan agreement with my friend/boss to loan the business the money. They turn around and write me a paycheck or two with that money (I thus have the money back for a downpayment, minus some tax). When June comes and they get the grant money, they don't pay me a salary but instead repay the loan (I gain back the tax that I paid earlier). Net result is that no one is harmed in either way and I have a couple of paychecks to prove the higher salary. So your opinion: stupid idea or not?
The worst I can forsee is that the business won't repay the loan, but of course they already used the loan to pay me a salary. So in the worst case senerio, I'm out the tax on a paycheck. I'm certainly willing to lose that to avoid paying movers twice, and paying for furnature storage, and to avoid all the frustrations involved with moving into a place we don't want. Is there anything else I'm not thinking of?
Any other suggestions if you think this is a bad idea?
I have a job lined up doing what I did for research at the company which paid for my research. They have an NIH grant coming in June which will provide guaranteed money for my salary (quite a good salary). The catch is that there is no extra money available until June to pay me. We had hopes to get the money in March so this whole issue wouldn't have been a problem, but due to some delays there isn't any extra cash to float me buy.
I'm in a situation where we really want a house. I'm in deep enough trouble with my wife for keeping us in the apartment this long as I got my PhD (we were going to move after the Master's). Keeping our apartment isn't an option and finding a new apartment won't be easy - especially for just a couple of months. The cost of moving all our heavy furnature and storing the furnature while we wait for a house is certainly a drawback of getting another apartment. Plus apartments are money pits, I'd rather have the money going towards my house.
So I need a home loan. I've got great credit scores, I've got a long term employment as I've been working for them for years, downpayment of any amount is not a problem, and I've got a guaranteed high salary. I just don't have paystubs to show the high salary - just the lowly student salary I've been on. So I'm not going to be able to get a decent home loan (US Bank loan officer didn't want to accept a promise of employment and wanted paycheck stubs). It would be a real shame to move into a crap house that we don't want to live in - when we can afford a lot better.
So my hairbrained idea is this: take my downpayment and draw up a formal written loan agreement with my friend/boss to loan the business the money. They turn around and write me a paycheck or two with that money (I thus have the money back for a downpayment, minus some tax). When June comes and they get the grant money, they don't pay me a salary but instead repay the loan (I gain back the tax that I paid earlier). Net result is that no one is harmed in either way and I have a couple of paychecks to prove the higher salary. So your opinion: stupid idea or not?
The worst I can forsee is that the business won't repay the loan, but of course they already used the loan to pay me a salary. So in the worst case senerio, I'm out the tax on a paycheck. I'm certainly willing to lose that to avoid paying movers twice, and paying for furnature storage, and to avoid all the frustrations involved with moving into a place we don't want. Is there anything else I'm not thinking of?
Any other suggestions if you think this is a bad idea?