Do lenders use your Adjusted gross income or net income?

Do lenders use your Adjusted gross income or net income?

Member since 2018 · 35 posts · 12 votes

I’d like to buy a new house this year. I have a w2 for my full time job and my rents I collect reflected on my tax return. I spent a lot on improvements on a rental this year (hvac system, new flooring) that usually I would have captured on my tax return but I’m worried that the lower AGI is going to affect how much I qualify for for the new house. Will it?

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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Talk to the lender but I believe they'll use AGI. The repairs you speak of are not repeated annually and shouldn't be deducted from your available funds.
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