The amount of income we verify impacts the total loan amount we can offer you. In some cases, verified income might be lower than stated income. Investor and industry guidelines govern what income we are able to use. Here are a few examples:
- If you earn bonus, commission, or overtime income that hasn’t been consistent over the last 2 years, we may not be able to give you credit for all of it.
- If you are reporting any self-employment losses on your tax return, they will be deducted from your qualifying income.
- If self-employment income is declining year-over-year, we have to use the lower amount.
- If you report rental income, we use the net amount, after subtracting out certain expenses you have written off on your tax return.
- If you are using income from alimony or child support, we have to document that it will be received for at least the next 3 years.
If you want additional certainty as to the purchase price you qualify for, we recommend getting a verified pre-approval letter.