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Mortgage Loan and Tax Returns

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Member

Mortgage Loan and Tax Returns

If you're applying for a mortgage do they look at your prior years tax returns if you are employed and have a w2? Or do they just look at current income?
My husband is self employed but I'm not. I'm trying to get a mortgage in my name only. We do file joint returns every year but his income has been very low past couple of years so don't want him on the mortgage application. Please advice.
Message 1 of 12
11 REPLIES
Established Contributor

Re: Mortgage Loan and Tax Returns

You should be good to go if you are not using your spouse's income for qualification purposes and you are a W2 employee as you stated. 

 

They will want to verify your past income and your income tax account for a couple years though.  

 

 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 2 of 12
Member

Re: Mortgage Loan and Tax Returns

Ok great. Thanks for responding.
Message 3 of 12
Valued Member

Re: Mortgage Loan and Tax Returns

Agree with prior post with an exception Smiley Happy  If you are living in what's called a "community property state", then you must include your spouse on the application (something about assets and debts being equally owned).  Those states are Arizona, California, Idaho, Nevada, New Mexico, Wisconsin, Washington, Texas and Louisiana.

 

Message 4 of 12
Frequent Contributor

Re: Mortgage Loan and Tax Returns


@ArsenalGunner wrote:

Agree with prior post with an exception Smiley Happy  If you are living in what's called a "community property state", then you must include your spouse on the application (something about assets and debts being equally owned).  Those states are Arizona, California, Idaho, Nevada, New Mexico, Wisconsin, Washington, Texas and Louisiana.

 


The above post is true, but for ONLY for Government loans, (FHA,VA,USDA) Conventional loans do not require spousal debts it be included, even in Community Property states.

 

Thanks,

VA & FHA down to 550...
Licensed Senior Mortgage Loan Officer in the states of Arizona & California
Specializing in VA, FHA, USDA & Conventional loans. My company is also licensed in 12 states, Arizona, Colorado, Nevada, California, Oregon, Washington, Utah,
Alaska, New Mexico, Texas, Illinois and Florida
Message 5 of 12
Established Contributor

Re: Mortgage Loan and Tax Returns


@Homebound18 wrote:
If you're applying for a mortgage do they look at your prior years tax returns if you are employed and have a w2? Or do they just look at current income?
My husband is self employed but I'm not. I'm trying to get a mortgage in my name only. We do file joint returns every year but his income has been very low past couple of years so don't want him on the mortgage application. Please advice.

Even with low income, it helps. As long as the cash flow is positive. Are you part owner of the business as well? If you are, they're going to count business income as well.

Mortgage Loan Officer in Greater Chicago Area plus 49 states
Message 6 of 12
Member

Re: Mortgage Loan and Tax Returns

Thank you. He filed a loss in 2016 so I'm not sure how helpful it will be. I am not part owner of the business. I'm afraid the loss might hurt.
Message 7 of 12
Member

Re: Mortgage Loan and Tax Returns

Thanks everyone for responding. I do live in Texas and trying to apply for FHA.
Message 8 of 12
Established Contributor

Re: Mortgage Loan and Tax Returns


@Homebound18 wrote:
Thanks everyone for responding. I do live in Texas and trying to apply for FHA.

Hi Homebound18,

 

Since you are here in Texas & you're trying to go FHA, your husband's individual debts have to be counted against your income so you may need to add your husband to the loan.

The best thing you can do is have lender look over everything to see what your options are.

Please feel free to PM me for help.

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 9 of 12
Member

Re: Mortgage Loan and Tax Returns

Thank you. I'll PM you.
Message 10 of 12