08-18-2013 06:56 AM
08-24-2013 12:50 AM
"Grossed up" is the term you are looking for.
Most lenders will gross it up by 20-25%. However some lenders will determine what your federal tax bracket would be and gross it up by that amount, i.e. if you are in a 15% tax bracket they'll only gross it up by 15%.
It's a good idea to shore that up with your loan officer when determining what you can qualify for.