Your regular income and per diem can be considered in your income, but your expenses will also have to be considered. Your tax returns will have to be reviewed to accurately calculate your qualifying income. If receive a W2 from your employer, then we have to include your unreimbursed employee expenses that you write off on your Form 2106 in your debt-to-income ratios.
If you get a 1099 or file business tax returns then we use your taxable income with some other adjustments. This is really not the place to try and explain all the intricacies of calculating self-employed income from tax returns, but suffice it to say that you need to be talking to a loan officer who is experienced and knows how to properly calculate your qualifying income.
Based on a review of your tax returns a good loan officer will be able to show you exactly how much income can be used to qualify you. It is also important to consider any business expenses that your business pays as their may be some debt payments that can be excluded from your debt-to-income ratios.
Let me know if I can help get you on the road to homeownership! ;-)
Brian Cardenas, Sr. Mortgage Consultant
AmeriFirst Financial, Inc.