Income question

[FSUGAPEACH]

I made $60k more this year due to an overtime project at work. I am in the beginning stages of qualifying for a mortgage. I am married and my DH owns our primary residence and will not be on this loan so we will be basing this solely on my income. Question is this. How do they factor in my income? I started this OT project Oct 2010 and discontinued this project October 2011 therefore my last 2 paystubs will show my "normal" take home pay. Do they do an average of the last 2 years of W 2s or do they look strictly at the income on the last 2 paystubs? Hope this is making sense!

[Anonymous]

They used my last two paystubs and my year before tax return sheets, but if you talk to them about it depending on the person they might work with you. Some places might use different methods like contacting your employer and having them fill out a form showing you average hours for a pay period and your hourly pay.

[boomhower]

If memory serves with OT you have to have two years worth for it to be counted, otherwise they use your base pay.  If you want to use the OT you have to use your last two years of W2's.

[FSUGAPEACH]

So do they average the last 2 years of W2's to come up with you average salary?

[Booner72]

When I got my FHA loan, they did look at last year's taxes, but only to verify my income matched what i reported to the government.

They also used the income from the last 2 months.  I was hoping they'd look at annual, but they don't.  I have "furlough" days i am required to take, and the months preceeding closing included furlough's, so I was out 200 of income that I thought I would get to be counted.

Good news was I qualified w/ that income level (Didn't affect my DTI).

Good Luck

[DallasLoanGuy]

Normal  take home pay ONLY will be used to calculate ratios.

[FSUGAPEACH78]

Which is determined by W2's or paystubs?

[Anonymous]

We just applied for our mortgage and had to provide the last two month's pay statements; the gross pay amount shown was used as the income amount for loan purposes. Qualification for a mortgage is based on current, documented (by current pay statements) income.