Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for user8763750

Question regarding FHA and 401K loans, theworknumber.com

Hi everyone, I'm trying to get a FHA mortgage in Tennessee. Does anyone know of a lender who does not consider 401K repayments in the DTI ratios, or will accept theworknumber.com for bonus and OT income? As far as the bonus/OT, I have a two year history and the income is currently being received. The issue is that my employer uses theworknumber.com and will not further comment on continuance. I could qualify if they would use the bonus/OT -or- not include my 401K repayment, but I'm having an issue finding a lender that will do either. Thanks in advance for the help!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 10 2013 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (6)

As mentioned before by some, repayments made to your 401k are typically not included in on your DTI's. Some Lenders have what we would call "Overlays" and include them. (We do not include them)

As for the Overtime and Bonus income, if you can prove you have a 2+ year history of receiving that, then yes... you can include that income source as well.  EVEN IF your "VOE" states they will not answer that question due to Company Policy. Again, there are many lenders who will in fact not give you any "income" if the VOE is marked "cannot answer" won't answer, etc, etc...   (We will if you can prove a history of it)

 

Good Luck

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 22 2013
Profile picture for user8763750
That is correct that FHA does not require 401K loans to be included, but apparently some lenders are making this a requirement. This is why I'm trying to find a lender which will accept FHA guidelines without any additional overlays.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 11 2013
401k loans are not included in your debt ratios.  As Barry stated it is your money that you are paying back.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 10 2013

Actually, FHA guidelines do not count 401K loan repayments in your debt ratios. The logic is, you borrowed your own money and are repaying it to yourself. You can stop paying on that loan at any time and then the loan will be converted to a withdrawal and you will have the tax consequences.
  The FHA guideline states:
4155.1 4.C.6.b- Obligations not considered debt and should not be subtracted from gross income include:
contributions to 401K accounts (including repayment of debt secured by these funds).

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 10 2013
Unfortunately, the 401K repayment will be considered by all underwriters.
As for the theworknumber.com-that sounds like a company policy not to comment on continuance.

Good Luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 10 2013
Hi user8763750,

That's one of the penalties to their employees for using a "shortcut" like theworknumber.com. You could politely ask your HR payroll rep to fill out a written verification of employment that will specify likelihood of overtime income. Then, the underwriter can see its elaboration. It will still remain, however, a choice for the underwriter whether or not to use that income.

For the 401k loan if there are repayments, it's considered a monthly payment obligation and will always require inclusion with your other debt payments.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 10 2013
 
Related Questions
can my wife and i apply for a VA loan together?
Profile picture for Brandon Dinsbach
Latest answer by Brandon Dinsbach
2 hours ago | 11 answers
Reversed Effects Of Aging
Home loan for credit score around 600
Profile picture for Ken Burrows
Latest answer by Ken Burrows
5 hours ago | 3 answers
Help with making a decision house buying
Profile picture for Sonny Tran
Latest answer by Sonny Tran
11 hours ago | 3 answers
Can you get a FHA in <2 yrs after a short sale if you were late on some payments at the time of SS?
Profile picture for Nic Netherton
Latest answer by Nic Netherton
12 hours ago | 9 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.