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Old 03-05-2009, 12:40 PM
 
148 posts, read 524,485 times
Reputation: 84

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I was reading another thread where a poster stated that his sister inflated her income to obtain a refi. Someone commented about the mortgage company verifying income via tax returns. Is that always reliable? For instance, my dh is on his third tour in Iraq. He was gone in all of 2004, left again July 2006 came back July 2007, left again July 2008 and will be home July 2009. Maybe a little sooner. But my point is, everytime he's deployed, his income is not federally taxable, So that doesn't get included on the W-2 or the tax return. Also, even when he's home, the BAH and BAS portions (currently about $1700/month) are not taxable and not included on the W-2 or Tax return. So, since he's gone for half the year, our tax return may say he earned ~$30,000 for the year, but in actuality he earned ~78,000. His LES's reflect that, the the W-2s and tax returns do not. So how would that factor when they are doing their checks and balances?
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Old 03-05-2009, 12:57 PM
 
Location: Richardson, TX
11,821 posts, read 18,972,230 times
Reputation: 30961
If the underwriter requests tax returns to substantiate your income, I would imagine they will definitely submit the 4506 (irs verification) form in this political climate.

I am not sure from what you're saying if they will ask for tax returns on your loan though. Taxable income not being on the W-2 is a problem if there isn't something to document why. It doesn't show at all anywhere on the W-2?

What is an LES?


Also, they won't be going back to 2004. They want to verify 2 years income.
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Old 03-05-2009, 01:03 PM
 
Location: Maine!
470 posts, read 1,734,790 times
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Quote:
Originally Posted by Debsi View Post
What is an LES?

Leave and Earning Statement = pay stub
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Old 03-05-2009, 01:09 PM
 
148 posts, read 524,485 times
Reputation: 84
LES is the Leave and Earnings Statement that military members get. Pretty much his paycheck stub so to speak. BAH and BAS are the nontaxable allowances for food and housing. Only his base pay is taxable. When I sent my mortgage broker the copies of his LES's and W-2s I explained it, but she acted like she already knew that. I guess maybe it's common when dealing with VA loans? I guess when you're buying your first home you're always worried that SOMETHING will come along and snatch away your happiness and when I read that thread last night I got anxious. But then again... I guess when they get the full copies of the bank statements they can see the automatic deposits corrolate to the LES, showing the LES is correct. Guess I'm just a worry wart.
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Old 03-05-2009, 01:14 PM
 
Location: Richardson, TX
11,821 posts, read 18,972,230 times
Reputation: 30961
Quote:
Originally Posted by mrsclmn View Post
LES is the Leave and Earnings Statement that military members get. Pretty much his paycheck stub so to speak. BAH and BAS are the nontaxable allowances for food and housing. Only his base pay is taxable. When I sent my mortgage broker the copies of his LES's and W-2s I explained it, but she acted like she already knew that. I guess maybe it's common when dealing with VA loans? I guess when you're buying your first home you're always worried that SOMETHING will come along and snatch away your happiness and when I read that thread last night I got anxious. But then again... I guess when they get the full copies of the bank statements they can see the automatic deposits corrolate to the LES, showing the LES is correct. Guess I'm just a worry wart.
Yeah, that sounds fine to me. Also if everybody's stubs are like this, I'm sure there is something in place to deal with this problem. (I personally have very little experience with VA loans).

Don't borrow trouble, try to relax.
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Old 03-06-2009, 12:37 AM
 
Location: San Jose (Willow Glen)
180 posts, read 654,348 times
Reputation: 96
Quote:
Originally Posted by mrsclmn View Post
LES is the Leave and Earnings Statement that military members get. Pretty much his paycheck stub so to speak. BAH and BAS are the nontaxable allowances for food and housing. Only his base pay is taxable. When I sent my mortgage broker the copies of his LES's and W-2s I explained it, but she acted like she already knew that. I guess maybe it's common when dealing with VA loans? I guess when you're buying your first home you're always worried that SOMETHING will come along and snatch away your happiness and when I read that thread last night I got anxious. But then again... I guess when they get the full copies of the bank statements they can see the automatic deposits corrolate to the LES, showing the LES is correct. Guess I'm just a worry wart.
relax, you are fine.
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