New income for DTI- need clarification

2 Replies

I recently got a new job that has allowed me to get below the DTI threshold. My question is does the new income level need to appear on a tax return or will paystubs and maybe a offer letter suffice?

Originally posted by @Rigo V. :

I recently got a new job that has allowed me to get below the DTI threshold. My question is does the new income level need to appear on a tax return or will paystubs and maybe a offer letter suffice?

 If it's W2, and either base salary or hourly with you expected to work full time hours, and it ballpark lines up with your employment history as career progression in the same industry, it can be used before it appears on tax returns.

If it checks some of the above boxes, but not all, then we're in "it depends" territory:

- A former lawyer that used to make $100k/yr that is now trying to say they make $175k/yr as a janitor working for his father in law... probably not going to fly.

- A project manager at XYZ Tech that got poached by ABC Wizardry to be a project manager with a significant pay-bump, and the borrower/employee is not a relative of the new employer, that'll typically work just fine. Even though we went from the Tech industry to the Wizardry industry, it's still project management and the career progression makes sense.

Chris Mason, Lender in CA (#1220177) and California (#1220177)
415-846-9211

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