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Stating extra income when applying for a mortgage loan?

extra income
Mute D asked:


Should I state my extra income even though I don’t pay taxes on the extra income when applying for a home loan?

FRANCISCA
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This entry was posted on Saturday, December 27th, 2008 at 7:26 am and is filed under Extra Income. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “Stating extra income when applying for a mortgage loan?”

  1. Dale H Says:
    December 27th, 2008 at 1:57 pm

    For the most part, you cannot just “state” your income. It has to be verifiable. This is done through tax returns, W-2′s and pay stubs. If you are not claiming the income on your returns, most lenders and programs will not consider it for qualifying purposes.

    Hopefully, you have enough verifiable income to qualify for the loan you are seeking. If not, ask your lender if they have any programs that may allow “secondary stated income”. This is income that cannot be verified through traditional sources like tax returns. For instance, if you are a carpenter by trade and have W-2 income from your employer, but you also earn income from side jobs, but have not declared it for tax purposes, you may be able to use it to the exent that it doesn’t exceed 25% (for example) of the verfied income.

    Good luck.