Stating extra income when applying for a mortgage loan?

Posted on Jul 12, 2024 in Stated Income Loans

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Question by cliff_dweller: FHA loans What are the pros and cons of FHA loans? I am in California if that makes a diffrence?
What are the pros and cons of FHA loans? I am in California if that makes a diffrence. Thanks!

Best answer:

Answer by Marty S
A FHA loan is a 30 year fixed (or 15 year fixed) loan that is insured by the federal goverment. The pros are that the rate is not that bad, case and your loan is insured by the federal goverment. They also have easy FICO score requirements. However, more about they do not like it if you have had past collections. If I can be of any assistance, shoot me an email msmith@premierloangroup.com, and I’ll help

Marty

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Question by Mute D: Stating extra income when applying for a mortgage loan?
Should I state my extra income even though I don’t pay taxes on the extra income when applying for a home loan?

Best answer:

Answer by Dale H
For the most part, abortion you cannot just “state” your income. It has to be verifiable. This is done through tax returns, buy information pills W-2’s and pay stubs. If you are not claiming the income on your returns, cure most lenders and programs will not consider it for qualifying purposes.

Hopefully, you have enough verifiable income to qualify for the loan you are seeking. If not, ask your lender if they have any programs that may allow “secondary stated income”. This is income that cannot be verified through traditional sources like tax returns. For instance, if you are a carpenter by trade and have W-2 income from your employer, but you also earn income from side jobs, but have not declared it for tax purposes, you may be able to use it to the exent that it doesn’t exceed 25% (for example) of the verfied income.

Good luck.

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