Regarding two years of tax returns

[Anonymous]

In regards to an FHA loan, when showing the last two tax returns (1099 net income), does the lender pretty much always look on these two years equaly? What I mean is, will this coming  filing  (2012) carry any more weight in a lender's eyes  than my 2011 (since it is the more recent year) or is it the past 24 months averaged regardless of what the more current year shows. Thanks

[Mike_B03]

They average it out over 24 months but it's also important that the recently most year is not lower than the previous year. So if 2011 was $50k lets say, then 2012 should be at least the same amount.

[Anonymous]

Thanks Mike. I'll be a little more "conservative" in my deductions for 2012.