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Per Diem included in DTI calculation?

Hello,

My employer calculates my pay, then takes subtracts $38 per day from the taxable income and gives it back as a non-taxable income. I am looking at applying for an FHA in April, and am trying to see if this income can be included in my DTI figure. It is clear on paystubs that this is done, how it is done, and that it is done weekly. As an over the road truck driver, it is also standard for the industry.

I have seen comments about if the income is not taxable, it can't be included, and I have seen where if the income can be shown to be reliably reoccuring that it can be included.

Thanks,

Nick
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January 30 2010 - Las Vegas
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so long as it its considered effective income and continuance, we can consider; my concern since your an over the road truck driver is how are you paid, per mileage, per loads basis, salary + any above. Do you recieve w/2  or 1099 at years end; there are various thing to consider with your type of position. make sure you sit dwon with an expert that understands the cash flow process of tax returns.

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January 31 2010
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I am an employee paid per mile. I maintain a spreadsheet that shows everything in a logical manner for that reason, and my paystubs make it very clear. Some people have a hard time understanding a Net income significantly over the Gross. I have an outside DTI of 8-13% depending on counting the Per Diem. I should be fine for the price range I am looking at, but I am trying to critique every angle of my application to make it easier when the time finally comes in April to start the process and try to be under contract by April 30th.
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January 31 2010
The thing about per diem income, is that it is usually paid to reduce, or reimburse, job related expenses. If proper accounting is conducted, there will be job related expenses on the tax return, of a person receiving per diem. These expenses will in fact reduce the gross income of the employee that receives the per diem. If not, you end up paying tax on the per diem income, at the end of the year, versus at withholding time. Right?
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January 31 2010
coolrider, from what your refferancing and type of income earned, the underwriter will more than likey not use your paycheck stubs for effective income calcuation; rather since you expected closing date is in April 2010, you will need 2009 taxes competed. then the underwirter will use 2009 and 2008 average, minus out any federal tax sch A line item 2106 non-reimbursed expenses, add back in any paper losses, deprecation, depletetion, portion of standrad milage rate deduction, etc.
you're taking the right steps, just be very cautious on the lender choosen as last thing you want is decline because the loan officer had no clue had to determine your income.
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January 31 2010
 
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