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self employed and need to know what income will be used to base my loan amount off of.

My taxable income is only 70K (for last year) but my actual income is higher. Are there amounts that I can include to increase my actual qualifying income? by jennifer.littleto... from Lydia, South Carolina. Dec 12th 2016 Reply


We take your net income on schedule c and are able to add back depreciation and depletion to your net income.

Dec 12th 2016
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Larry Gray (lgray_312_247)
#1 ranked lender in California - 945 contributions

You can try and adjust your taxes for 2016 to show more net income, if necessary. It is important, of course, you get qualified with a mortgage broker/banker well versed in reading Federal tax returns and assuring you get to count any income not taxed you are entitled to. Depreciation can be added back to your net income used to qualify with. Once that process is properly completed you will know exactly what you need to adjust your taxes to show the minimum net income you need to qualify, if necessary. I only do loans in CA but happy to refer you to an associate who can do so in South Carolina if you contact me via my profile.

Dec 12th 2016
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Phil Dumouchel (PhilDu)
#33 ranked lender in South Carolina - 2,219 contributions

Recommend you not try to calculate your own debt ratio - very few customers do it accurately. Especially if you are self employed, or own 25% or more of the business. Let an experienced mortgage lender work with you to help you determine your qualifying income, at least based on your 2015 taxes. If 2016 is similar you'll have a pretty good idea where you'll be after you file. Self employment income is usually based on the average of the past 2 years.

Dec 13th 2016
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Todd Glassman (Todd Glassman)
#1 ranked lender in South Carolina - 102 contributions

We have self employed non QM bank statement loans if you are looking to use a higher income.

Dec 14th 2016
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Eric Wilcox (ewilcox)
#211 ranked lender in Florida - 9 contributions

It would be best to meet with a mortgage Professional to review what income is acceptable from your Schedule C. In most cases it is a 2 year average but it is possible for 1 year. Depreciation and some mileage can be added back to your income. $70,000 of income should qualify you for over $250,000 mortgage depending on other debts.

Dec 14th 2016
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