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I work in the service industry and a good portion of my income is tips. Can these be used in helping me to qualify for a loan?

by maureen348 from Salt Lake City, Utah. Mar 4th 2016 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,797 contributions

Yes, but in order to use tip income for qualifying purposes, you need to be collecting it for 2 years, and you must be reporting it on your taxes.. So if you have been a waiter/waitress for 2 years consistently (does not have to be the same employer), and you claim all your tip's, then yes.. it will be counted.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Mar 4th 2016
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Justin Murray (JustinMurray)
#102 ranked lender in Illinois - 172 contributions

Yes, if you are reporting them as income on your tax returns and can show a 2 year history of claiming them, we will then take an average of the 2 years ad use as income. If that is not the case, we can possibly look at a Non-Occupant Co-borrower if someone will co-sign for you. We do offer these loans in your state.

Mar 4th 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

As others have said, you need to have been claiming the income on your federal taxes. (If it shows on your paystub it counts and would have been reported.) If not it doesn't count toward your qualifying income.

Mar 5th 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

ps. Kind of like someone that does babysitting, it doesn't count as income if it was not reported because otherwise there is no way to track it.

Mar 5th 2016
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Jesse Stroup (jessestroup)
#193 ranked lender in California - 589 contributions

The lender will use the income on the tax returns or w-2's.

Mar 7th 2016
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