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Tanishacuster, Home Buyer in

Can imputed medical income be counted as income when applying for a mortgage?

Asked by Tanishacuster, Sun Apr 14, 2013

I have applied for a mortgage but my monthly is a little too high for the loan that I need. I have give what I gross annually, but I did not count the imputed medical income that is for my husbands health insurance that is on my check every 2 weeks. It is CLEARLY listed under the earnings section of my pay and is CLEARLY calculated into my gross pay on every pay stub. It IS considered income for the purposes of calculating my federal taxes. Should it be counted? If so, it would put me right where I need to be by adding an additional $378 every month to my income.

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Bruce Ailion,CRS,CRB,MSRE,ESQ’s answer
Without commenting on the classification of income a potential solution would be an intermediate adjustable rate loan, 5,7 10 years to lower your payment and debt ratios. Most people do not understand that when you take out a 30 year loan you are buying a rate commitment for 30 years and if it is unlikely for you to consume that rate for 30 years you are paying for something you will not use. Say you were buying frozen chickens. Would you buy a 30 year supply if they would become stale or unsafe after 10 years just to know the price was fixed. Consider other stable index intermediate term adjustable loans as an option and discuss these with your lender.


Bruce Ailion,
RE/MAX Greater Atlanta
An Atlanta Real Estate Expert Serving Clients Since 1979
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1 vote Thank Flag Link Sun Apr 14, 2013
I would go back with all my income statements and doc's you have and have your lender re-check your qualifications.. Good Luck
0 votes Thank Flag Link Sun Apr 14, 2013
I have never heard of "imputed medical income" before. Only income actually earned by you would be considered as Qualifying Income for a mortgage. What the IRS views as taxable income is completely different from that of mortgage lending guidelines.

If the income you are referring to is due to having your husband on your health insurance plan, then no, that is not actual income that can be used for qualifying for a mortgage. Your emlpoyer only reports the amount that way as income for Federal Income Tax purposes.

For a salaried emloyee, your gross monthly salary would typcally be used for your Qualifying Income. If you are hourly or receive income from overtime, commission, or bonus, then that income would be averaged out over a at least a 24 month period. Your Year to Date income would also be factored into that 24 month average. Assuming your employer comments favorably on the likely continue of that type of income, that that should also be able to be included in your Qualifying Income. Monies listed on a pay stub just to comply with IRS tax laws would not be Qualifying Income.

If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Sun Apr 14, 2013
No - as far as I know you cannot use any type of benefits as part of your income to qualify. If your debt to income ratio is too high, your choices are to put more money down, pay off some debt, or switch from a fixed rate loan program to an adjustable rate loan porgram (ARM), as these carry a lower mortgage rate.

Warm regards,
Kim Jones
Senior Mortgage Banker
Fidelity Bank
3490 Piedmont Road, Suite 750
Atlanta, GA 30305
CELL/TEXT: 678.468.4046
eFAX: 678-829-0612
CLICK TO Apply Here!
EMAIL: kim.jones@lionbank.com
FIND ME ON FACEBOOK: http://www.facebook.com/KimJonesHomeLoans
FIND ME ON LINKEDIN: http://www.linkedin.com/pub/kim-jones/a/a68/109
NMLS# 545217
0 votes Thank Flag Link Sun Apr 14, 2013
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