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Can you Include Per diem as part of Income when getting a mortgage?

Profile picture for Smoe77
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I make about 100K a year when you include the Per diem that my company provides me to be on location for assignments and projects. Is there some way to include this in my income when trying to get a mortgage? It really effects my Debt to Income Ratio. With out it I would be  34/55 and with it my ratio is 26/41. Difference of FHA Loan or No loan the way I see it.
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August 12 - Corona
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Profile picture for SteveHeaney
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Since September 2009

Hi SMOE77I remember well when I used to travel 200 days a year and my per diem was my pocket money and more!  True per diem is not reimbursed expenses as some might interpret.  This is money paid for you for traveling (usually) to cover food and incidentals that if you were at home you may not incur.  While it may take some explaining to a condition happy underwriter provided you have the history of it you described it should be fine.  It is part of your gross income as they also do not take out your utilities, dry cleaning and food expenses for qualification.  It would be different as some other answered eluded if it were non-taxed reimbursed expenses.
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August 12
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Pushing the limits like this -- getting an exception to meet the DTI requirements -- indicates financial risk.

A smaller loan reduces the risk.
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August 12
Profile picture for Smoe77
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This Per diem has been received consistantly for the last three years and Is taxed on my paystub.  It is called out as perdiem on the pay stub but it is part of my taxable income. Hope this helps.
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August 12
"Per Diem" represents employer-paid expenses, and is not part of your income.
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August 12
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Hamp Yonce

Rock Hill, SC

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Since November 2009

I don't think it is income. It is in affect, an advance of cash to cover job related expenses, that would otherwise reduce your income. The good news is those expenses don't reduce your actual taxable income portion of the 100K. I could be wrong.
Not taxed equals not income. If you want to amend your returns and pay tax on the perdiem funds, well then.....
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August 12
If it has been received consistently over the years and is expected to continue for another 3+yrs.  But isn't it already a part of your YTD income on your pay "stub"?
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August 12
 

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