DallasLoanGuy or Shane

[Anonymous]

My husband and mother(she's a non occupying co-borrower) got approved for an fha loan. They are set to close on the 29th of this month. My husband took to many deductions this year to get approved by himself so we asked my mother to apply with him and she did. She just tells us today that on Monday she will be laid off due to budget cuts. Will this effect them getting the mortgage since we have to tell the lo tomorrow since they will will be doing the voe soon? Also if my husband went to the account and ammended our returns can he apply for the mortgage just in his name or would we have to wait till the irs gets them and proccess them?

Any advice you could give us is greatly appreciated. 

Message Edited by KV-Boo on 05-14-2008 05:06 PM

[DallasLoanGuy]

Oooh... good one.

I have never had anyone amend their returns for an approval. So I will leave that one alone.

It is very possible that lender does a VOE during closing.

Sorry

[nosxih]

What does it mean 'To many deductions'?
I hope to buy soon and I took deductions for me,DW and 5 kids who all live with me and are under 17. (yes, they are all mine! oldest moved out)

I have done some pre-approval applications and deductions have never came up.
Should I have to worry about this?

(I have ammended tax returns for a tax lien, it is doable)

[Anonymous]

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nosxih wrote:
What does it mean 'To many deductions'?
I hope to buy soon and I took deductions for me,DW and 5 kids who all live with me and are under 17. (yes, they are all mine! oldest moved out)

I have done some pre-approval applications and deductions have never came up.
Should I have to worry about this?

(I have ammended tax returns for a tax lien, it is doable)

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To many deductions is when you write off a lot of stuff on your tax returns(car miles, gas supplies etc...). But as we learned it will come back and bite you in the butt.

[Anonymous]

I may be wrong but my understanding is the loan officer looks at gross income, not taxable income.  There is usually a large difference between the 2 numbers and it would never benefit someone to have the taxable income used.

[DallasLoanGuy]

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izoid wrote:

I may be wrong but my understanding is the loan officer looks at gross income, not taxable income.  There is usually a large difference between the 2 numbers and it would never benefit someone to have the taxable income used.

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it sounds like they may be self employed or 1099

that means the lender will use net income after deductions.

many deduct all they can to reduce taxable income.... you can't have your cake and eat it too.

[Anonymous]

Bump

[ShanetheMortgageMan]

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KV-Boo wrote:

Also if my husband went to the account and ammended our returns can he apply for the mortgage just in his name or would we have to wait till the irs gets them and proccess them?

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Most likely your husband would have to sign an IRS Form 4506 with the lender for the application.  This form allows the lender to pull a copy of the tax returns that were filed.  The company that most lenders use is www.Veri-tax.com.  Veri-tax gets the information directly from the IRS... so yes the IRS would have to process them.  Since amended tax returns and extensions are usually done through local IRS offices often Veri-tax does not get those verifications for a significant period of time afterwards... so in that case, instead of the 4506, you'd need to get a stamped certified copy of the tax returns from the IRS when your husband goes to file them.