so my AGI when doing deductible hurt my chance of a loan

Las Vegas, Nevada
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so my AGI when doing deductible hurt my chance of a loan

Brian Elston
Member since 2019 · 4 posts · 0 votes

Wanted to do a first time home buyer house hack FHA but being a 1099 by writing off Semi truck purchase hurt my 79k down to 25k. Even if I do those Non traditional loans they don't do fha and I doubt any will offer low downs in the current market with the feds raising rates etc. So what do I do now, 20k in my bank that i don't know what to do with now.

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  • Nick BelskyBusiness Member
    Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
    4y

    @Brian Elston

    How long have you been a 1099 employee? There are other programs that you may qualify for that don't require tax returns at all... To my knowledge, 10% down is the minimum, but you may still qualify for FHA. We'd need to know a whole lot more about your profile than what you've told us to know for sure.

    Cheers!

    [email protected]
    Belsky Mortgage, LLC521 Reviews
    WebsiteView Page
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  • Brian Elston
    OP
    Member since 2019 · 4 posts · 0 votes
    4y
    Quote from @Nick Belsky:

    @Brian Elston

    How long have you been a 1099 employee? There are other programs that you may qualify for that don't require tax returns at all... To my knowledge, 10% down is the minimum, but you may still qualify for FHA. We'd need to know a whole lot more about your profile than what you've told us to know for sure.

    Cheers!

    6years as a W2 truck driver then last year was self employed for higher income where I gross 78k last year. but I purchase truck and did the whole deductible which put me 25k AGI when doing my tax return. 10 percent in las vegas is a lot because the homes keep going up every couple months. If i known AGI was going to screw me I would've tried to bought late last year instead of now.

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    4y

    @Brian Elston The depreciation deduction for the truck purchase gets added back in to your income, since it is not an actual “expense”....any competent lender/underwriter knows this.  Without 2 years of self employed income though, you’ll have an issue.

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  • Nick BelskyBusiness Member
    Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
    4y
    Quote from @Brian Elston:
    Quote from @Nick Belsky:

    @Brian Elston

    How long have you been a 1099 employee? There are other programs that you may qualify for that don't require tax returns at all... To my knowledge, 10% down is the minimum, but you may still qualify for FHA. We'd need to know a whole lot more about your profile than what you've told us to know for sure.

    Cheers!

    6years as a W2 truck driver then last year was self employed for higher income where I gross 78k last year. but I purchase truck and did the whole deductible which put me 25k AGI when doing my tax return. 10 percent in las vegas is a lot because the homes keep going up every couple months. If i known AGI was going to screw me I would've tried to bought late last year instead of now.

    So the good news is that you have more than 2 years of 1099.  When you say deduction for the truck, are you referring to the purchase price deduction or depreciation?  Depreciation will would get added back to your income, whereas the purchase or expense deduction for the purchase would not... two different animals.

    I would offer to help you with this but I am not licensed in NV for primary.  

    Cheers!
    [email protected]
    Belsky Mortgage, LLC521 Reviews
    WebsiteView Page
    0Reply
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