Applying for mortgage

[BabyMonkeys]

My husband and I are planning on buying a home early next year. My dilemma is that I don't know if I should claim all of my deductions, which would give me a larger return, which could be used as a downpayment, OR should I not take as many deductions, which would show that I have a higher income. I'm trying to find a mortgage lender that has the slightest clue about the tax codes for home daycares, but so far no luck. Any advice is greatly appreciated

[Blackcat31]

My husband and I are planning on buying a home early next year. My dilemma is that I don't know if I should claim all of my deductions, which would give me a larger return, which could be used as a downpayment, OR should I not take as many deductions, which would show that I have a higher income. I'm trying to find a mortgage lender that has the slightest clue about the tax codes for home daycares, but so far no luck. Any advice is greatly appreciated

I have not purchased or refinanced a home while being a child care provider but here are a couple other threads about mortgages. Maybe one of them will have some helpful information for you.

https://www.daycare.com/forum/tags.php?tag=mortgage

[TomCopeland]

Mortgage

My husband and I are planning on buying a home early next year. My dilemma is that I don't know if I should claim all of my deductions, which would give me a larger return, which could be used as a downpayment, OR should I not take as many deductions, which would show that I have a higher income. I'm trying to find a mortgage lender that has the slightest clue about the tax codes for home daycares, but so far no luck. Any advice is greatly appreciated

I've written an article about this: http://www.tomcopelandblog.com/2011/...-now-what.html

You may want to prepare a monthly cash flow statement that shows how much cash you have each month to pay off a mortgage.

[laundrymom]

Personally, for the lenders in my area, they only care about my last two years tax returns and they averaged them.
They used net income after all deductions.

[Leigh]

My husband and I are planning on buying a home early next year. My dilemma is that I don't know if I should claim all of my deductions, which would give me a larger return, which could be used as a downpayment, OR should I not take as many deductions, which would show that I have a higher income. I'm trying to find a mortgage lender that has the slightest clue about the tax codes for home daycares, but so far no luck. Any advice is greatly appreciated

First, see if you can qualify on your husband's income alone. We didn't include my income at all when we purchased a new home last year-just my husband's.

[spud912]

First, see if you can qualify on your husband's income alone. We didn't include my income at all when we purchased a new home last year-just my husband's.

This is what we did

[sahm1225]

I used to work in the mortgage industry. On the schedule C, we would use the net and add back the line that says business use of home. Then we would use bank statements statements to support the income.

I would recommend calling local lenders and asking how they calculate their self employed income.