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madie1214 · Joined: 24 Jan 2010 Posts: 1 1.48 Dollars($)

My husband is a W2 wage earner and together we are joint partners with our minor child's music business. Our partnership started on our 2008 tax return so we were able to write off our expenses. There has been very little income earned at this time. According to our tax return our adjusted income now is very low now b/c of this. We are trying to purchase a home and the lender is saying not only do we supply my husband's last paystub and W2 they have to send a 4506-T to the IRS to confirm our return amount, etc. Our mid scores are in the 690's. Is there any way around this so that we may qualify for a loan? All of our expenses for the business were charged on credit cards and i understand that our minimum payments are used in qualifying but will we still have a chance to buy a home just based on my husband's gross income and our debt and not by the "adjusted gross" income?

smithsussane · Posted: Sun Jan 24, 2010 8:34 pm Post subject:

Hi madie!

Welcome to forums!

The lender will be considering your adjusted gross income and not your net income while giving you a loan. I would suggest you to submit the required documents to the lender and check out what he has to say in this regard. You can even speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will let you know whether or not you would get a loan.

Feel free to ask if you've further queries.

Sussane

Guest

Thanks Sussane. I was hoping it was just the gross that is considered b/c as a W2 wage earner including our debt we qualify for one amount but when you factor in our partnership it was a loss so therefore our adjusted gross shows we make very little when in fact those expenses are on credit cards/loans that is considered with our qualifying ratios. Does that make sense?

Posted: Sun Jan 24, 2010 11:44 pm Post subject:

I would suggest you to speak to your lender and discuss the whole issue with him. He would let you know whether or not you would qualify for a loan.

gmakerley · Posted: Mon Jan 25, 2010 12:01 pm Post subject:

every lender these days exercises a 4506-T. it's become industry standard and it's in part a reaction to all the "liar" loans that were granted before the crash of the mortgage market. the lender in this case will take into account all the regular (w2) wages as well as what effect your partnership will have on them - certainly a reduction, in part, on the income that will be considered in qualifying you for a new loan.

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