First time self employed, having issues due to tax write off

Guest

I am having trouble now after i gave my lender the taxes for the year 2007 and 2008. I am a computer technician and drive around to job sites quite a bit, each year i had around $25k in mileage deductions. They are now stating with so many deductions on my taxes I would need some kind of co signer.

Any help on this subject at all?

Thanks

it is proving to be quite a hinderance compared to be a w-2 worker to get a home loan.

jenkin7 · Posted: Wed Oct 07, 2009 1:54 am Post subject:

Hi dvdt,

Getting a loan being self-employed is not as easy as it used to be a few years back. Now, you need to show a steady and sufficient income for at least past 2 years to qualify for a home loan. There are lenders who still offer loans to self-employed people. But they often ask for more than 20% down payment. I think you should with contact some other lenders and see if they can offer you the loan. You can also check out if any of your relatives or friends can co-sign for you.

Guest

is it pretty common to have a relative co sign?

i have showed sufficient income on the taxes but once i take my deductions for mileage and other business expenses they are saying my income after deductions is way too low.

my mileage deductions since i drive for work so often is probably hurting me the most ($25k)

gmakerley · Posted: Wed Oct 07, 2009 11:03 am Post subject:

dvdt - your income, as seen by a lender, is your bottom line number, after all deductions. to that number, depreciation is added back, if you have any. yes, your odds of obtaining a loan are far less when you factor in your deductions, but that's how income is calculated for self employed borrowers. if you have the opportunity to write off less in the way of expenses, you'll be better qualified as a borrower. of course, you'll pay more taxes, so it's a decision you'd have to make.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1735 35.94 Dollars($)

They are lookign for some one along with you to co-sing so your incoem and their incoem combined can help you to qulify for the loan

Guest

my dad is a farmer so when he tried to cosign he has alot of writeoffs so they say his income wasnt going to work either.

i cant belive this!

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1735 35.94 Dollars($)

The problem as george mentioned, your incoem after deductions is comign really low and thats what causing the issue

dvandentop · Joined: 09 Oct 2009 Posts: 3 1.35 Dollars($)

do they ever use modified agi to get these loans pushed through?

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1735 35.94 Dollars($)

Thats a good question

But not sure if they do it any more

All times are GMT - 7 Hours

Page 1 of 1