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Self employed, amended tax return

I am using my last two years of tax returns to obtain a loan, however, the 2013 tax return has been amended to reflect a higher income amount. I hear that this may cause a problem with the approval process. Is this true? I am shopping for a mortgage and don't know if I should bother applying until next year. by sheila.shum66949 from Terryville, Connecticut. Sep 11th 2015 Reply


Teoman Turut (teoturut)
#40 ranked lender in Connecticut - 13 contributions

Hello Sheila,Amended tax return with higher income should be ok as long as the numbers makes sense to the underwriter. if amended increase in income in 2013 is significant you may have to show some paper trail proof. Your 2014 tax return income better be similar and not much less than 2013 tax returns.Also your current monthly liabilities, and property taxes, home insurance, mortgage insurance (if any)for the property that you are purchasing that will be escrowed on monthly bases are important factors involved in your loan qualification for debt to income ratios. Let me know if I can be of any assistance to you. My direct phone# 203-557-5522Teo Turut

Sep 11th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

A strategy used by self employed borrowers has been to amend past years tax returns to reflect higher income and then once the loan closes, they amend the returns once again and show the lower income.. Because underwriters by nature are looking for loan fraud, when you submit your tax returns for qualifying, expect them to be scrutinized. I've even see an underwriter ask for the un-amended returns for comparison. They will compare your income vs. expenses and analyze the percentages.. if your income goes up but your expenses are the same or less, then this is a tell tale sign of someone amending returns for qualifying.. 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

Sep 11th 2015
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Janet Chavez (optionmortgage)
#35 ranked lender in Connecticut - 1 contribution

Hello Sheila,You can avoid that issue by just using one year tax return which would be 2014. I can help you get your mortgage with just one year tax return.You may call at 860-770-7826 to get more information.Thanks,Janet ChavezOption Mortgage

Sep 11th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,446 contributions

The answer is maybe... If you've amended your return to reflect a higher income with the sole intent of showing more income to qualify for a mortgage, it isn't going to fly. If the amended return is fixing a return mistake, and you have a good explanation that makes sense, you should be able to use the amended return without issue. Another thing they usually look at is "when was" the return amended. 6 months ago? probably not a problem. A week before application? Probably a problem.

Sep 12th 2015
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#29 ranked lender in New York - 2,236 contributions

Give us a call to discuss, there are many questions and factors involved to answer your question fully and completely. We are happy to have a 15 minute conversation with you to help you make a plan and decide whats best for you. Call anytime 7 days a week 9 am to 10 pm. 800-991-5309Thanks,Michelle

Sep 12th 2015
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