gross income, or is it net income ??? - Posted by Cas

Posted by River City on August 22, 2003 at 09:26:28:

Go to the following website to see how Fannie Mae determines income from self-employed borrowers:

http://www.efanniemae.com/singlefamily/pdf/1084.pdf

gross income, or is it net income ??? - Posted by Cas

Posted by Cas on August 20, 2003 at 12:14:40:

Hello,

I have a question.

When lenders review the income of self-employed borrowers, the lenders look at the Tax Returns. But which income they use in determining the qualifying income ?

Do they use the GROSS reported income as the ?qualifying income? ?

Or do they use the NET reported income as the ?qualifying income? ?

In other words, if a self-employed person GROSSED $200,000; but NETTED only $30,000 (this is just an example), which figure would the lender look at to determine ?qualifying income? ?

Anyone know ?

Thanks