Posted on: 14th Dec, 2010 11:57 am
Help!
My husband and I are about to build our dream home. The bank has approved us for our desired construction loan amount but wanted us to go through the mortgage side to get a commitment letter for them to take over the loan.
My husband has been a self-employed business owner for nearly 18 years. I have a full and part-time job that provide W2s and I also have a freelance business that I report and pay taxes on as well.
Both of our credit scores are in the high 700's and lower 800's. We had a home paid for outright and sold it to purchase the property we are going to build on. We have nearly $100k in the bank. We have no credit card debt and no car payments.
Our problem is when the bank uses Fannie Mae's underwriting software, it takes our tax deductions and our business depreciations and counts those against our income. With their crazy formula, it shows us making $800 less than my two take home W2, not to mention my husbands personal income and the business income. They say we are making only 1/3rd of our actual net pay.
What can be done? Any suggestions would be appreciated.
Thanks
My husband and I are about to build our dream home. The bank has approved us for our desired construction loan amount but wanted us to go through the mortgage side to get a commitment letter for them to take over the loan.
My husband has been a self-employed business owner for nearly 18 years. I have a full and part-time job that provide W2s and I also have a freelance business that I report and pay taxes on as well.
Both of our credit scores are in the high 700's and lower 800's. We had a home paid for outright and sold it to purchase the property we are going to build on. We have nearly $100k in the bank. We have no credit card debt and no car payments.
Our problem is when the bank uses Fannie Mae's underwriting software, it takes our tax deductions and our business depreciations and counts those against our income. With their crazy formula, it shows us making $800 less than my two take home W2, not to mention my husbands personal income and the business income. They say we are making only 1/3rd of our actual net pay.
What can be done? Any suggestions would be appreciated.
Thanks
Depreciation is added back.
You could be making less than your gross income.
You can not be making less than your net income.
You can only be making less than your net income if your husbands expenses exceed gross income and he shows a loss, once agin, after adding back depreciation.
You could be making less than your gross income.
You can not be making less than your net income.
You can only be making less than your net income if your husbands expenses exceed gross income and he shows a loss, once agin, after adding back depreciation.