Forgotten Your Password?

Need to Register?

Question Icon

Im trying to buy a home. Theres a 30,000 difference from the two years. Which number will be considered? Or will they take average

by linasqpon303 from San Mateo, California. Feb 26th 2017 Reply


If you are a W2 employee, the underwriter will take the latest income. If you get bonuses and it varies, it will be averaged.

Feb 27th 2017
0
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,446 contributions

Need more information, but hopefully this will cover the questions. If you are self employed, commissioned, or variable hours (like a construction worker), if 2015 is lower that 2016, we will take the average. If 2016 is lower than 2015, we will take the lower 2016. If you are regular salary or hourly, we will take your current income. www.JoeMetzler.com

Feb 27th 2017
0
0
Larry Gray (lgray_312_247)
#4 ranked lender in California - 1,127 contributions

If self employed or 1099 employee, typically, if your income dropped more than 10% in the subsequent year, the lender will use only the most recent year. If the recent year is less than a 10% drop, or if it is more income a two year average will be used. Now in cases of solely w-2 income and a case of partial commissions/bonuses it depends on each individual loan qualifications overall...you very likely could have the more recent income used even though it is substantially larger. Generally bonuses are averaged over two years.

Feb 28th 2017
0
0
Subscribe to our news feed.