Reply
Established Contributor
Posts: 923
Registered: ‎03-23-2012
0

2nd Mortgage and taxes

Hi All,

I have a question around taxes and new mortgage. On the tax transcript form there are two options 1)tax form transcript which is is described as a transcript of your tax returns (forms only) and 2) transcript of your account history which gives account balance. Which option do banks request when qualifying for a new mortgage?

We are set to close on our streamline refi on 10/15, and during this process, the bank only asked for option 1. We are on an installment plan, but it never came up in underwriting. It may have come up but because it doesn't really affect our DTI, they didn't question us...I don't know.

The purpose of refi is to reduce our monthly payment so we can qualify for a new home while keeping our current home. (We are not able to sell because we are underwater, but we are planning to use a guaranteed lease program to cover the cost of current mortgage for 3 years). Our hope is to rent out current home and sell in approx 3 years.

Does anyone know which transcript banks pull for a new mortgage? Is it just the forms or is it the full account transcript? We can qualify for a 2nd home even if they count the installment payments. However, if its included, it would affect the amount that we would qualify for.

We have not applied with any mortgage companies because I don't want any inquiries on our credit until after our refi is closed (don't want to have to explain anything), so I'm basically using the various online calculators to get a ballpark figure.

All thoughts are greatly appreciated.
Capital One QuickSilver 5K - AmEx Green NPSL - Amex Hilton HHonors Surpass 7K - Amex BCP 16K - Chase Freedom 4.5K - Discover IT 7.5K - LOC 2.5K

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.