Where to obtain a home loan for a Professional Truck driver paid via w2/with gov. meal allowances?

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The government allows truck drivers to take a meal allowance off their taxes and most lenders are condemning us and subtracting this from our incomes causing us to have low DTI and low income…thanks to the new laws that protect lenders and make consumers become permanent renters!!


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There are two possibilities. (1) You will need to bring written proof showing that the government allows this deduction plus an explanation of why it is higher than the average. I know that it seems obvious to anyone in that field – or anyone with common sense – but that is not a prerequisite to be a loan officer. They consider food to be a personal expense and not part of their income qualification.

(2) See if there is a truck driver association that recommends certain lenders who are more supportive.

(3) Keep looking for a lender.

Also, if a food deduction is really “disqualifying” you from getting a loan, my thoughts are that your expense to income ratio is just too high in the first place. Honestly, I would recommend focusing on either getting a smaller loan or saving a larger down payment.

Answered 4 months ago
4 months ago penny c said:
 

The written proof is on the irs.gove site….it is the allowed meal allowance from the government for over the road drivers away from home…..if u have 300 days out as i did last year times by $59.00 a day and then you get to write off 80% of that on form 2106…..and then this along with your other unreimbursed expenses is carried over to the unreimbursed expenses on form A for taxes….and no lender is willing to speak with my accountant or go to the irs.gov site to verify that this is a meal allowance!

4 months ago penny c said:
 

http://www.irs.gov/pub/irs-pdf/i2106.pdf

Step 3—Figure ExpensesTo Deduct on Schedule A(Form 1040 or Form 1040NR)Line 9. Generally, you can deduct only 50% of your business meal and entertainment expenses, including meals incurred while away from home on business. However, if you were an employee subject to the DOT hours of service limits, that percentage is increased to 80% for business meals consumed during, or incident to, any period of duty for which those limits are in effect. Employees subject to the DOT hours of service limits include certain air transportation employees, such as pilots, crew, dispatchers, mechanics, and control tower operators; interstate truck operators and interstate bus drivers; certain railroad employees, such as engineers, conductors, train crews, dispatchers, and control operations personnel; and certain merchant mariners.


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I’m guessing the aggregate 2106 expenses are a large percentage of your overall income. Review your taxes with a qualified CPA…..determine if you are paying tax anyways….sorry if that seems obvious but I’ve seen it a lot, where self employed borrowers try to write off “everything” and shoot themselves in the foot when applying for home loans. The kicker is, they were writing off more than they would have needed to qualify for a home loan. My advice – find a premium member from this site that lends in your state and review your application with them. If they tell you the same answer – believe it, and work with them to set yourself up for a successful application next time.

Answered 4 months ago

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