Financing in Tampa>Question Details

First Timer, Home Buyer in Tampa, FL

Adjusted Gross Income vs Gross Income Mortgage calculations. How to avoid AGI calculations in mortgage approval since I have many business deductions?

Asked by First Timer, Tampa, FL Mon Jan 14, 2013

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Fred Glick’s answer
There is only one way that income is calculated in order to qualify for a mortgage and it is based on net income plus depreciation averaged over 2 years.

You should have a mortgage person look at your tax returns to see what you will qualify for.

Good luck,

Fred Glick, NMLS #133975
U S Loans Mortgage LLC #51022
215.238.9400
fred@usloans.com
Web Reference: http://usloans.com
1 vote Thank Flag Link Mon Jan 14, 2013
First Timer, The Dodd Frank act signed July 2010, changed lending and its impact on both lenders and borrowers alike.

Credit scores, debt to income ratios, ability to repay the loan, required minimum downpayment are all now stringent requirements of this act.

Rather than protect the consumer, the criteria has the opposite effect eliminating many potential homebuyers from the market.

20% down payment has been supported by regulatory agencies for homeownership in 2014. One qualifying factor will be a debt load of 43% for total debt. This will impact self employed and first time homebuyers.

Recently, regulations were changed from averaging the most recent 2 years net adjusted gross income to using the lowest net adusted gross income out of recent 2 years.

If your business grossed 1 million dollars and you earned $20,000 (net adjusted gross income) then lenders based upon the regulations evaluate your earned income at $20,000.

If you are looking to buy 2013 is a good year.

Best regards,

Lynn Brock
Brock Realty Inc.
http://www.brockrealty-inc.com
941.313.1234

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0 votes Thank Flag Link Sun Jun 9, 2013
Contact Gina Harris with Iberia Bank, she will be able to give you the correct answer.

Gina Harris

Mortgage Specialist
iBERIABANK MORTGAGE COMPANY
3550 Buschwood Park Dr., Suite 295

Tampa, FL 33618

813-244-5685 cell

All the best,
Alma
http://www.SoldOnTampa.com
0 votes Thank Flag Link Mon Jan 14, 2013
I am a First time home buyer and I have been hearing horror stories of how using the adjusted gross income will limit your buying power. The reason I mentioned this is because I own a S Corp that breaks even while maximizing our business deductions. Wife makes great income but that is offset by these biz deductions. We haven't entered into the preapproval phase yet because we are awaiting some guidance on how we should go about filing our taxes. I am just looking for some more insight into the process.
0 votes Thank Flag Link Mon Jan 14, 2013
The best choice for you is to speak with a mortgage broker. At this time there are many first time homebuyer programs that require little to no money down. If you would interested in the contact information for a wonderful broker who can walk you through the process and provide you with honest, helpful info, please send me an email at Thoyt@prutropical.com or click on my profile here on Trulia. I personally have worked with her on my own home and feel she is one of the best in the business.

Tracy Hoyt,
Realtor
Flag Mon Jan 14, 2013
Is this for a commercial loan or for personal property?

The two are very different.

In general you would disclose all expenses and incomes on a loan to insure you are using the correct purchasing power.

I work with many lenders and would be happy to supply you with their information. They might be able to give you a better idea of what would be required to secure the loan.

Please contact me at THOYT@prutropical.com, or through my profile here on Trulia.

Tracy Hoyt
Realtor
Prudential Tropical Realty
813-352-6219
0 votes Thank Flag Link Mon Jan 14, 2013
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