Posted on: 29th Apr, 2011 10:05 pm
We applied and were approved for our mortgage, credits fine, income is fine. However, when it went to underwriting it was denied based on a large amount of Unreimbursed employee expenses on our taxes from 2008 and 2009. (We filed an extension for 2010 based on our upcoming across country move and his new job). I understand that the law requires the negative income BUT the underwriter has no reason to believe it will continue. The mortgage was denied based on the DTI ratio using expenses incurred at an old job- a job he just quit. The whole point of us moving and settling into a permanent non-travel job was to eliminate that expense. We realized that though we were both making great money traveling, the money we saved by no longer traveling more than justified a pay cut when my husband was offered a permanent job. He was an industrial construction safety manager. He received a job offer to as senior safety coordinator at a power utility- a permanent job working in an established power plant with no travel. His old job was safety manager for industrial construction- obviously by nature a traveling position moving from one project to the next until it completes. We worked ground up construction projects and left when they were built. The underwriters refuse to accept that the nature of his job has changed because they see safety manager in both titles and know that he worked for an electrical contractor who built power plants. His NEW job will be managing safety in an operating plant and will not involve moving - ever. The government regulations to manage safety for construction and general industry are even different. His new employer even wrote a statement for the underwriter saying he would incur no unreimbursed expenses or travel in his new job. The way this is currently figured, I would need a $58k a year job to offset the negative income they are taking away from his current DTI or we will have to wait two years without a form 2106 to buy a house. Is there anything we can do to prove the job is still managing safety - but the nature of the work is completely changed. I liken it to traveling nurses, of course they have expenses and nurses who work in their local ER do not. If a nurse stopped traveling and took a permanent position she is still a nurse and thus still working in the same field; but the nature of her work is changed. There surely has to be some way to address people who no longer have that negative income.
based on your paragraph i see no problems unless the jobs are commissioned/bonused in nature.
Welcome tammyway,
I agree with what the Guest has said. Based on the situation that you've mentioned, I don't think you should face any issues in getting a mortgage. You should contact other lenders and check out if they can help you with a mortgage. This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and find out if you can get a loan.
I agree with what the Guest has said. Based on the situation that you've mentioned, I don't think you should face any issues in getting a mortgage. You should contact other lenders and check out if they can help you with a mortgage. This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and find out if you can get a loan.