Posts: 9
Registered: ‎07-17-2012
Conventional mortgage: Which gross wage is used?

I'm a salaried employee, which, as I understand, means that my gross wages will be considered when determining DTI; I'll also be applying for a conventional loan so that I can pay the MI upfront in a single premium, and not have to have it tacked on the the loan.

That said: Which gross wages do lenders use when determining DTI? There is about a $5,000 difference between the gross wage reported on my pay stub, and the gross wage that is taxable and reported on my W-2, due to health insurance, 403(b) distributions, FSA, etc. If lenders use the pay stub wage, I'm easily within DTI limits, but if they use the W-2 wage, it's getting pretty close...