florida

FLORIDA MORTGAGE WITH W2 INCOME ONLY NO TAX DEDUCTIONS

 

Our W-2 Only Florida Mortgage Program is for Florida home Buyers that have filed 2106 expenses & as a result do not qualify for a home loan.

W2 Transcripts Program Guidelines

 

  • Applicable to Conventional, FHA and VA loans up to $625,500 subject to Florida county limits excluding Homepath.
  • W-2's & Current Paystubs.  
  • No Tax Returns Required
  • NOTE: If Borrower has any other income such as Scheduled C or E they are NOT eligible for this program
  • ALSO: Borrower's that earn 25% or more of their income from commission will NOT qualify for this program
  • Signed 4506 required (we will Only run W-2 transcripts)
  • FHA / Conventional & VA Loans up to $625,000 (subject to county limits)
  • Purchases & Refinances 

 

Our W-2 Only Florida Mortgage Program is for Florida home Buyers that have filed 2106 expenses & as a result do not qualify for a home loan.

 

1STARTNOW

 www.Florida-Mortgage-Lenders.com 

If you are a Florida W2 employee and you’re trying to buy a Florida home with too many tax deductions you might have a problem. Florida homebuyers learn quickly that if they take advantage of to many unreimbursed expenses on their tax returns that include meals, computers, uniforms, cell phone usage, travel or other related or not work related expenses the expenses are considered unreimbursed employee expenses. Too many unreimbursed deductions can lower your Florida home buying purchasing power.

Throughout the year Florida w2 employees write off expenses in order to deduct or write off their income. Your w2 write offs lower your taxable income so at the end of the year you you have a lower taxable income.

Where Florida homebuyers write off unreimbursed employee expenses?

As a W2 employee you will find all of your unreimbursed employee expenses on line 21 of your Schedule A – this is part of your federal tax return.

How do these unreimbursed expenses impact my income for purchasing a home?

When looking at line 21 of your Schedule A you will see your annual employee expenses. This amount will include any of the expenses you have incurred as a direct result of your job.

Everything in the world of mortgages is calculated monthly so let’s breakdown the numbers:

•           Annual Gross Income………………………… $50,000

•           Annual Employee Unreimbursed Expenses.. $20,000

•           Annual Taxable income   ……………………..$30,000 /12=

•           Final Monthly Mortgage Qualifying Income.....$2500

Ok so what’s the problem? Lenders don’t like to extend borrowers Debt to income ratio beyond the standard 35% towards the housing expense.

1STARTNOW

www.Florida-Mortgage-Lenders.com 

What do debt-to-income ratios have to do with my mortgage? Debt-to-income ratios (DTI) are used to ensure you can afford to pay your mortgage along with other monthly debts you may be paying (such as a car payment). There is a front and back ratio - the formula is simple math:

Monthly Mortgage Payment / Gross Monthly Income = Front DTI

Your front DTI shows your income can sustain just the mortgage with taxes, insurance and any condo assessments.

Monthly Mortgage Payment + Monthly Debt / Gross Monthly Income = Back DTI

Your back DTI shows you income can sustain the mortgage in addition to other monthly obligations (only those found on your credit report).

It’s rare your W2 unreimbursed employee expenses will prevent you from buying a home; however, if your back debt-to-income ratio (DTI) is nearing the average limit of 45 percent your deductions can push your percentages over the ideal threshold and can create some challenges.

It’s difficult to speculate on every loan scenario so understand that these challenges can typically be resolved by simply lowering your monthly debt or using a lender with more flexible lending guidelines.

So what’s the bottom line?

On average, any of these unreimbursed employee expenses will be minimal, yet still worth mentioning to your Florida mortgage professional during the Florida mortgage loan preapproval process.  So Which Deductions Can Be Itemized?
Schedule A is broken down into several different sections that deals with each type of Florida itemized deduction. For a breakdown of your itemized deductions, see the IRS instructions for Schedule A.

The following is a brief overview of the scope and limits of each category of itemized deduction:

  • Unreimbursed Florida Medical and Dental Expenses - This deduction is perhaps the most difficult - and financially painful - to qualify for. Taxpayers that incur qualified out-of-pocket medical and/or dental expenses that are not covered by insurance can deduct expenses that exceed 7.5% of their adjusted gross incomes.
  • Interest Expenses - Homeowners can deduct the interest that they pay on their mortgages and home equity lines of credit.

Each year, mortgage lenders mail Form 1098 to Florida borrowers, which details the exact amount of deductible interest and points that they've paid over the past year. Taxpayers that bought or refinanced homes during the year can also deduct the points that they've paid, within certain guidelines.

  • Taxes Paid - Taxpayers who itemize are able to deduct two types of taxes paid on their Schedule A. Personal property taxes, which include real estate taxes, are deductible along with state and local taxes that were assessed for the previous year. However, any refund that was received by the taxpayer from the state in the previous year must be counted as income if the taxpayer itemized deductions in the previous year.
  • Charitable Florida Donations - Any donation made to a qualified charity is deductible within certain limitations. Cash contributions that exceed 50% of the taxpayer's adjusted gross income must be carried over to the next year, as well as noncash contributions that exceed 30% of AGI. (Keep reading about donations in Deducting Your Donations and It Is Better To Give AND Receive.)
  • Casualty and Theft Losses - Any loss incurred as a result of a casualty or theft can be reported on the Schedule A. Unfortunately, only losses in excess of 10% of the taxpayer's adjusted gross income are actually deductible. If a taxpayer incurs a casualty loss in one year and deducts it on his or her taxes, then any reimbursement that is received in later years must be counted as income. Casualty losses are carried on to the Schedule A from IRS Form 4864.
  • Unreimbursed Florida Job-Related Expenses and Certain Miscellaneous Deductions - W-2 employees that incur work-related expenses can deduct any aggregated expenditures that exceed 2% of their adjusted gross incomes. These include items such as equipment and supplies, protective clothing, expenses for maintaining a home office for the convenience of the employer, vehicle expenses, dues to professional organizations and professional subscriptions. Certain other miscellaneous deductions are listed in this section as well, such as income tax preparation and audit fees and any expenses related to maintaining investments or income-producing property. These fees include such things as IRA or other account maintenance fees paid out of pocket, legal and accounting fees, and margin interest.
  • Other Miscellaneous Florida tax Deductions - This final category of IRS itemized deductions includes items such as gambling losses to the extent of gambling winnings, losses from partnerships or subchapter S-corporations, estate taxes on income in respect of a decedent and certain other expenses. For additional details, see IRS Publication 17 and the instructions for Schedule A.

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