Income for Mortgage question

[Anonymous]

DW and I were pre-approved for an FHA loan of 345K in Galveston County, TX. The house we are looking at is 398K. We initally pre-qualified for a $400K conventional, but the underwriter would/could not count my "expense reimbursment" as income. As of my last paycheck the total for that was $12K+ YTD. In my case my reimbursement is not the "money out, money in" type. It is milage reimbursement. I know technically I put gas in my car but it is negligable compared to the return pay. Also we do not get reimbursed for the gas, even though there is an option to input it on the form. My department isnt allowed to do so.

Ex. $35 tank x 2 fill ups/week = $75. On average I drive 100 miles/day at 0.54/mile reimbursement rate x 5 days/wk.

= $54/day x 5 days/wk = $270/wk in reimbursement

= $270 - $75 = $195 additional income per week (minimum).

Although I know its not taxed, it is reported on my paycheck stubs every week. We submit seperate mileage expense forms weekly and it is added to the following check.

My question is, is there anyway to have this income counted in the calculations or will it just be "dead money"?

Please let me know if any aditional data points are needed

[homeloanexpert]

If it's not taxed by the IRS and appear as part income on your paycheck and W2, it's not considered income. Like per diem, it's considered a reimbursement to the employee. Employers deem this type of income a perk to their employee, as it finds it way to them untaxed. Remember, this income is supposed to be a reimbursement of an expense that was directly out of the pocket of the employee in order to do their job. Sorry, I know it sucks!

Best wishes to you!