Stated Income Mortgages

Great so it seems my only two options are to either buy half the home I can afford or get some sort of private funding with absurd interest rates.

quote:

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Or you could report all of your income on your tax return and prove u make money

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I don't think you understand how these loans work.

That is the price you pay for writing everything off on your taxes.

I asked the same stated income mortgage question a few days back and the answer I got from some lenders is this: I need to "show" enough income on my last 2 years returns to provide a lender proof that I make sufficient money to not be over the 45% DTI ratio.

The question is how much income. I figured out a simple little formula:

(Mortgage payment + debts)/.45 = monthly income required

If you need $4,000 monthly income then you need to "show" at least $96,000 for the 2 year span. So you need to adjust how you file for 2010 or you can amend past returns and pay the taxes due on the amended return.

I my case I own a C-Corp and it would be a cluster-frick to amend both returns. So what I'm going to do is leave my 2009 returns alone and show W-2 income of $20,000. In 2010 I'm going to show enough W-2 income to cover my total for the 2 year average.

Some lenders have told me that if you put 20% down they will waive the 2 year requirement and allow me to only have to "show" 1 year. I'll hold my breath for that one!