Effect of Deferred Comp on Mortgage Application

Asked by Jenny, Tue Dec 9, 2008

Can anyone tell me how participation in a deferred comp program will affect my mortgage application? My situation is that I have the option to participate in my company's deferred comp program next year. It's offering a fantastic yield (~10%). I think financial advisors would suggest that I defer as much of my income as possible given it will earn that rate for many years to come, but I'm also looking to keep my options open next year as I have been looking to buy a place. If I have 30 - 40% down, excellent credit, steady job, etc., will not actually collecting a cash income in 2009 hurt my ability to get a mortgage? Or will banks/lenders recognize that I am still earning income? Thanks in advance for your advice.

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