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Mortgage Grapevine

INCOME ISSUE

CLIENT W2'D SELF EMPLOYED 3 YRS
I USED CURRENT HRLY RATE AND I AVERAGED PROFIT OVER TWO YEARS FROM BUSINESS. UNDERWRITER IS AVERAGING W2'D INCOME AND PROFIT FROM BUSINESS. HAS ANYONE CLOSED A LOAN USING JUST 1 YEAR INCOME ON A SELF EMPLOYED BORROWER BESIDES CONVENTIONAL OR CLOSED A LOA WHERE THE W2D INCOME WAS FROM CURRENT HRLY RATE NOT AVERAGED OVER 2 YEARS. UNDERWRITER SAID HECOULD GO AND PAY HIMSELF LESS NEXT YEAR ... WELL YA HE CAN BUT HIS CO COULD GO OUT OF BUSINES TOO... WHOS TO SAY WHAT WILL HAPPEN TOMMORROW..


THANK FOR ANY INPUT
by itseasy February 1, 2013 5:54 PM


Caps Lock key is on the left side of the keyboard.
by adelphos February 2, 2013 3:02 AM


So are you saying that if he decided to up his hourly rate to $500/hour today that he should be qualified using that with a 2 year average of his other s/e income as his base pay?!

How a s/e borrower draws their income (w-2, k-1, 1099) is irrelevant. All sources are averaged.
by bclender February 2, 2013 3:10 AM


Maybe go for best 2 out of 3.
by Driveby Poster February 2, 2013 1:42 PM


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