mercer transportation

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Hey guys so question. on our home loan we are doing they are saying my truck payment because i run under my name and is not INC. That they have to take my truck payment from my personal income. Has anyone ever had this happen? I Mean ur taking lets say $1800 in truck payments from a taxable income. That's a huge chunk of change about $21,600 from my total income of lets say $75,000. Doesn't leave much room for anything really. Has anyone ever delt with this on a home loan?

 

Yes, absolutely your truck payment is deducted from your income...it is an expense, just as a car loan or credit card. And most likely the lender isn't going to credit your days away per diem as income either.

 

They won't so thats about $13,000 right there but how is that right. Because i write my truck payments off which is already loss anyway.. That seems really messed up because i write off my truck payments every year at about $21,000 a year. So that's not even taxable income to begin with. They won't look at my Gross income and take it from that. Seems almost nearly impossible to get a home loan without paying cash price up front.

 

Why would they look at gross income? You can can gross a $1 million, and net -$100k....
Net income = revenue - expenses. Your net income is what you make.
Mortgage payment of about 30% of monthly net income is what you'll qualify for, depending on credit and down payment amount of course.

 

Try taking them a Profit/Loss statement and work with them that way. I had a hard time too, but if you use a smaller bank/credit union or go explain the situation to the loan officer face to face, it usually helps.

 

Is your truck a lease? If not, you can't write off the payments. You get to write off the depreciation of the truck. If they want to use your truck as a personal expenses than show your gross income as your income. Either way you get to your net income.

 

That's why I said use a small bank, big banks have a formula and usually go by it strictly. They look at net taxable income and then look at your credit report and for one truck operations, that kills your borrowing power because the truck is usually in your name and thus you are getting hit for it twice.... a new truck can cut your net from $75k to $40k quick like that. In my case, at the time that I bought my house, it cut me from $49k to to $17k.... try buying a house when you're grossing $220k, but their formula says you only made $17k

 

They won't even look at the P&L. Was told after a year with this truck payment which im 1 month Away then its not a big deal because it will cancel itself out. I Think Self employed people really get the shaft on home loans. We don't get Per diem either which really affects income

 

What you mean you don't get per diem?... You're legally allowed to write-off every day That you are out of town...