http://sctrak.com/FHACOSS

You have

GOOD INCOME FEW BILLSGREAT CREDIT

1 2 3+ +

shocked at the amount you are approved atChances are, unless you are a straight salary employee, the

problem is with your income; here are three reasons why.

1You Work Part-Time

1You might work 70 or even 78 hours a week, but if

you do not work 80­hours a week, you are not

considered full­time. An FHA loan and any other type

of loan, the lender is going to take an annual number

for your income. If you work fluctuating hours, they

are going to take an average of your hours over the

course of 52 weeks.

2You Work on Commission

2Commission income works in a similar fashion to

part­time income. You are forced to use an average

of your income – typically a 2­year average for

commission. This means if one part of the year was

exceptional for you, but another part was bad, you

are forced to take an average of those times in order

to get a real feel for your yearly income.

3You Have

Unreimbursed Expenses

3If you work at a job that requires that you pay a variety

of expenses or you own your own business and you

write off a bunch of expenses, you are going to have

to take those expenses off of your income for

qualifying purposes. The FHA requires you to use the

income that you report to Uncle Sam.

3The good news is that if you know that you are going

to apply for a loan in the near future, you can control

what expense you write off for any given year,

allowing your taxable income to be higher for a year

or two until you qualify for your mortgage.

The best thing to do is talk to a lender abouthow they would calculate your income. Youshould never assume that the income you

make is what it will be at face value.

Best FHA LenderBestFHALender is a one-stop shop offeringuseful information about FHA loans and enablingcustomers to shop for multiple lenders.

Finding the

CL ICK  HERETO   LEARN  MORE

Justin MchoodHe is Americas Mortgage Commentatorand has been providing Mortgagecommentary for over 10 years.

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