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Self employed here. Which is used to determine loan eligibility, income before business expenses, or after?

by tasia239 from Hawthorne, Wisconsin. Apr 14th 2016 Reply


AGI on the bottom of your taxes. Add 2015 and 2014 AGI and divide by 2. That's your income used. Small other items can be added back in like depreciation write offs back to that income.

Apr 14th 2016
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Joe Becker (JoeBecker)
#59 ranked lender in Minnesota - 58 contributions

We will review your tax returns take adjusted gross income along with certain line items we can add back into the income. What type of business do you have? I can be reached anytime! 715-656-4500 WI Office - Thank you!

Apr 14th 2016
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Ritchie Baumann (Ritchie)
#28 ranked lender in Wisconsin - 28 contributions

Depends on how your business is incorporated. Here is a worksheet from Freddie Mac http://www.freddiemac.com/learn/form_91.html

Apr 14th 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

Always after.. with a few exceptions.. This is the reason lenders came up with the stated income loans, it was specifically for the self employed borrower... but that loan product was overly abused... so it no longer exists.. if your company brings in $1,000,000 per year, but you write of $990,000, and you have $10,000 left over after expenses.. then for loan qualifying purposes.. you make $10,000... The exceptions are things like depreciation and certain loans that are attached to your personal credit report, but are paid through the company.. .. 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

Apr 15th 2016
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