Zillow Advice: FHA and VA Loans - our fha loan was denied looking for a second opinion http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ Zillow Advice | Zillow Real Estate Zee1234: Was your loan denied ... http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ Zee1234: Was your loan denied or just suspended? Your title says denied but your post says suspended. If it was suspended, what instructions did they give you, how long is it suspended for and what do you have to do to move forward? <br/><br/>We are in an almost identical situation. Applied for an FHA loan and we figured they would use our 2012 income + 2012 tax information (we are both business owners) but it looks like they are only wanting to consider 2010 and 2011 taxes since 2012 taxes aren't filed yet. It's been about 3 weeks into the process and I have a feeling we will either be denied or suspended until we file 2012 taxes. And like you, we are also thinking of possibly paying off some debt to help with the DTI. Thu, 06 Dec 2012 03:21:00 GMT http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ 2012-12-06T03:21:00Z Hello Zee,Unfortunately&nbsp;the ... http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ Hello Zee,<br/><br/>Unfortunately&nbsp;the underwriters&nbsp;approach&nbsp;is going to be the same pretty much wherever you go. &nbsp;They question his income not only because it is declining but because he can pay himself what ever he likes.&nbsp;<br/><br/>Even in the best case with paying off your credit cards, your Debt to Income is still questionable. &nbsp;Perhaps coming in with more money to get a smaller mortgage payment might help. &nbsp;Possible paying down or paying discount points will help you buy a lower interest rate bringing&nbsp;your debt to income ratio lower. &nbsp;This is an cheaper way of trying to get around your debt to income ratio with out having to put more money down. &nbsp;<br/><br/>I hope this helps<br/><br/>Chris Perez - Real Estate Finance - San Francisco, CA Tue, 04 Dec 2012 20:58:00 GMT http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ 2012-12-04T20:58:00Z The best thing is to contact ... http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ The best thing is to contact a loan officer to go over figures.&nbsp; Usually, a self-employment worksheet should have been filled out from the loan officer to figure out what income could have been used.&nbsp; <br/><br/>What did they determine your DTI?<br/><br/>Geofrey Tue, 04 Dec 2012 20:53:00 GMT http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ 2012-12-04T20:53:00Z Problem with using the P&amp;L ... http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ Problem with using the P&amp;L is that we have no idea if you have any year end expenses that will come off at the end bringing that income down.&nbsp; On top of that your W2 income is showing a decline from 2011 to 2012.&nbsp; Sit tight and get those 2012 taxes done as soon as possible.&nbsp; That will give everyone a clearer picture and you should be able proceed.&nbsp; Otherwise I would probably have to average the W2 income and only give you credit for $13k of business income Tue, 04 Dec 2012 20:44:00 GMT http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ 2012-12-04T20:44:00Z if we pay off all credit ... http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ if we pay off all credit cards we still will be short on dti a bit, i am just questining should have UW use that approcach not to use his income because his payroll is less this year than a year before, he is paying himself now at the end of the year whatever he feels is fair Tue, 04 Dec 2012 20:36:00 GMT http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ 2012-12-04T20:36:00Z thank you chris, here is ... http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ thank you chris, here is break down<br/>year 2010 W2-income 27k and business income 28k<br/>year 2011 W2-income 45k and business incme&nbsp;&nbsp; 13k<br/><br/>year to date paystubs 20k and profit and loss statement shows business has net income before taxes 150k Tue, 04 Dec 2012 20:32:00 GMT http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ 2012-12-04T20:32:00Z Hello and Thank you for posting ... http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ Hello and Thank you for posting this questions:<br/><br/>Underwriting is and can be hard to understand. &nbsp;These days with the lending&nbsp;environment&nbsp;being what it is, a conservative approach is what underwriter will seek out. &nbsp;<br/><br/>You "Post" is a little confusing as well. &nbsp;I see multiple forms of income and each form of income has general rules:<br/><br/>1) What was his self employed income in 2010, 2011?<br/>2) What is his W2 or Salary income in 2010,2011 and 2012 Year to Date?<br/>3) What does his profit and loss state 2012 Year to date?<br/><br/>Paying off your credit cards will lower your debt to income. &nbsp;What are your monthly minimum payments from your credit cards?<br/><br/>I hope this helps....<br/><br/>Chris Perez - Real Estate Finance - San Francisco, CA<br/> Tue, 04 Dec 2012 20:24:00 GMT http://www.zillow.com/advice-thread/our-fha-loan-was-denied-looking-for-a-second-opinion/470378/ 2012-12-04T20:24:00Z