Financing after an amendment to your return?

3 Replies

Hi all, I'm from Grand Rapids, Michigan and I recently had my tax returns amended. Upon telling the lender I was working with about the amendments they informed me that their policy is that they will not lend to anyone who has had an amendment within 6 months as to avoid people who would amend their taxes in order to appear to have a higher income and hence get the loan they want. My amendment also did just that as I had expenses that should have been put into depreciation schedules (as they now are). 

I have a good cash reserve but not enough for cash offer + rehab cash so I'm wondering if I have to just sit on the sidelines for another 6 months (the amendments took more than 3 months but that's a whole different story) or if there is some other way that I just don't know about? I'm not talking about owner financing either. 

I don't know if this is just their policy or a Fanny/Freddie rule either so maybe it's not going to be a problem (waiting on that answer from lender). 

Thanks for any input!

Sean Larson

Is amended depreciation figure is impacting on your income? Do you need that income to lower your DTI?

I really can't understand your post but the amendment was to depreciate things which did improve DTI.

@Sean Larson Some lenders  take conservatives approach they take lower income but still able to close. Do you need  that income? You can shop around it for this exception this is your lender overlays. 

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