Posted on: 29th Mar, 2010 04:14 pm
I am looking to refi some of my home loans (primary and vacation/rental). For the past two years I've worked on my own (51% real estate / 49% consulting) I make OK income ($160K total income) but deductions drop it to only $37K taxable income because I put a lot into my IRA and the depreciation I get on my rental homes. What will they look at on the refi? total, agi, or taxable income? Or all three? BofA told me only taxable income - which will not qualify for refi. Thanks for any help!
Hi mcnam!
Welcome to forums!
As far as I know, your taxable income will be considered in order to give you a mortgage. If you do not meet the required criteria of the lender, you will not be able to qualify for a loan.
Sussane
Welcome to forums!
As far as I know, your taxable income will be considered in order to give you a mortgage. If you do not meet the required criteria of the lender, you will not be able to qualify for a loan.
Sussane
You are self employed. Must be self employed 24 months or longer. Last two years net income will be averaged and most recent year should be higher than previous year or will just use most rceent year inocme.
Net income is gross receipts/income minus expenses, add back depreciation. The income used to qualify is befoire IRA contributions. That is not a business expense. It is something that reduces your taxable income, but it is still part of your income.
Net income is gross receipts/income minus expenses, add back depreciation. The income used to qualify is befoire IRA contributions. That is not a business expense. It is something that reduces your taxable income, but it is still part of your income.
