Coordinating a Business Sale and a Home Purchase Without Red Flags
"A real story about timing two major financial events so neither one jeopardized the other."
💼 The Challenge
Our client, a tech entrepreneur, was selling his company at the same time he wanted to buy a new home — and the two transactions were on a collision course.
🔘Business Owner 🔘 Concurrent Sale & Purchase 🔘 Complex Income Timing
However, the lender initially wanted a larger down payment, and the proposed workaround — borrowing from his own company — would have raised red flags with the lender reviewing the file.
Why?
"Borrowing from the company would have been a red flag for the buyer." – Lender review of the proposed down payment source
📉 This is a common roadblock for:
- Business owners buying and selling at the same time
- Entrepreneurs whose income is tied up in a company transaction
- Anyone whose down payment source needs careful structuring
And it's proof that how funds are sourced matters just as much as how much is available.
Repositioned how his income was presented to the lender, separate from the business sale in progress.
Restructured the deal around a 20% down payment instead of the originally required 35%.
Coordinated the timing of the business sale and home purchase so neither transaction was put at risk.
Two major financial events, handled as one coordinated plan instead of two competing deadlines.
💡 What You Can Learn from This
A lower down payment can sometimes solve a problem a larger one creates.
Funding a purchase from a company mid-sale needs careful structuring, not just available cash.
Overlapping financial events can be coordinated instead of forced into a rigid order.
📞 Call to Action
Facing pushback due to your job or income style?
Let us help tell your story — and find the right mortgage solution for you.
📧 paul.davidescu@mortgagepal.ca