Home Buying in 95747>Question Details

Julie, Home Buyer in Roseville, CA

I currently have a full time teaching job and am starting a side tutoring business.

Asked by Julie, Roseville, CA Fri Jul 20, 2012

Can my income from my side business be used to qualify for a mortgage in a year? Since I'm starting it in August the only income from the business will be from August to December.

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Answers

2
Jeff Marr’s answer
Julie - Morgan's answer was partially correct in that any self-employment income has to be reported on your filed tax returns to be considered eligible income. The other criteria, equally as important, is that we need a minimum 2 yr history of this income, and we need 2 yrs of this income filed on your returns...

We also will use your adjusted business income, netting out the deductions you'll most likely be taking....so the more you write off, the less income we'll be able to use..

So if you're just starting your business this August, we wouldn't be able to use this income until you can give us a copy of your 2012 and 2013 returns, which wouldn't be until early 2014 at the earliest..

Feel free to contact me to further review your situation!

I know I'm not giving you a thumbs up now, but maybe there's some other options I could find for you that could allow you to purchase sooner than later!

Best regards, Jeff Marr
0 votes Thank Flag Link Sun Jul 29, 2012
If your new income is reported on your tax return it will count as qualified income. The length of time you need for it to qualify varies.

The best way to get an accurate answer to your question is to contact a mortgage broker. If you need a name, feel free to give me a call. I'd love to help.

Morgan Larson
916-241-8788
0 votes Thank Flag Link Sat Jul 28, 2012
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