fha loan issues

You're right . It's unfair . I know exactly what you're talking about . I'm paid percentage so a W-2 isn't good enough . They want to see the last 2 years' tax returns . Then they go by net taxable income . Say I make $50,000 and deduct $10,000 in itemized deductions . They figure my income as $40,000 . Then some hourly driver comes in that has a W-2 for $45,000 . They figure the $45,000 as his income ad don't even ask for tax returns . I got denied a loan a few years ago because I bought a new truck and IRS " gave " me a $15,000 bonus depreciation deduction . I didn't spend any money , it put more money in my pocket because I paid less tax , but it made my taxable income $15,000 less .

 

Sounds like to me they just want you to prove your income. Anyone will have to do that to get a mortage! Income tax forms is just the proof they are wanting.

 

If you take per diem(half way forced by some companies) The lender will ONLY look at your taxable income for a loan/credit. This is what people here and I think is unfair. By example, the person that started the thread... made about $15,000 in a year per diem total. (of course they likely didn't spend ALL of that on the road) And the lender will NOT include that as earned income on a loan/credit.

Say this person made $45,000 last year including per diem. A lender will say they only made $30,000 and cannot qualify for a loan for a home because they need to make $42,000 minimum to qualify.(Clearly, they made enough if one includes per diem)

Fair? What do you think?