FHA W2 Income calculation?

[kaylord84]

Which box is is used to calculate Incomes on w2 for fha loans ? My box 1 is lower due to pension contributions.will lender use Box 1 ? Or will they use Box 5 which is my true Gross amount?

[iv]

Actual gross income.

Yes, in many cases Box 5 (Medicare wages and tips) happens to exactly reflect gross income... but there are things that can cause Medicare wages and tips to be different from actual gross income.

The number you need is usually on your final December paystub - you need gross income prior to all deductions (taxes, pensions, 401k/403b/457 plans, etc).

[kaylord84]

Thanks . yes my final checkstub gross amount matches the box 5. But I was told that lenders use Box 1