How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask PDtax Your Own Question

PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 1924
Experience:  Tax professional and business consultant for 32 years.
64119565
Type Your Finance Question Here...
PDtax is online now
A new question is answered every 9 seconds

I recently bought my primary residence with 20% down. Because

Resolved Question:

I recently bought my primary residence with 20% down. Because there is a need for home improvements I want to get a HELOC. I am a W2 employee and wife is self employed owner of 3 LLC's. She made loss in 2011, but turned profit in 2012 and 2013 is looking good as well.
When I went to US bank they could n't considered her draw as income, only looked at our tax returns as a source of her income. This resulted in high DTI and we were turned down. Can anyone offer insight into what and how the banks would look for my wife's income
Submitted: 9 months ago.
Category: Finance
Expert:  PDtax replied 9 months ago.

PDtax :

Welcome to the site. I'm PDtax, and can assist.

PDtax :

It sounds like your lender is looking only at W-2 verifiable income for loan requests. A return to more traditional lending after the loan issues of a few years ago is my guess.

Customer:

So what resort do we have to include my wife's income from self employment

PDtax :

The easiest way to get this bank to look at her income in your loan application is to establish a wage from one or more of her LLC's. The wage moves income to her for loan purposes, and the entity throws the remainder income to her without the self-employment taint.

Customer:

She already is taking wages and has 1 year of W2

Customer:

but they want 2 years of W2's

PDtax :

Then one more year should give the bank two years wage history, which more traditional lenders will do.

Customer:

So wait for the second W2 and submit again

PDtax :

You could produce a year to date wage statement showing higher wage, to be confirmed in January 2014 with a copy of the W-2.

PDtax :

Support that interim wage with copies of the 941's.

PDtax :

That way they should have enough without having to wait until january.

PDtax :

I often write letters for borrowers explaining these issues, but some banks have gone back to older banking ways.

Customer:

ok thanks

PDtax :

I hope that gives you an option to consider. Thanks from Just Answer. Positive feedback closes out your question. I'm PDtax.

PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 1924
Experience: Tax professional and business consultant for 32 years.
PDtax and 4 other Finance Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
< Last | Next >
  • http://ww2.justanswer.com/uploads/RA/rakhi.v/2012-7-3_14374_RakhiVasavadaL.64x64.jpeg Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1890
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    1755
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg JKCPA's Avatar

    JKCPA

    CPA

    Satisfied Customers:

    838
    Bachelors degree and CPA with Accounting experience.
  • http://ww2.justanswer.com/uploads/starside8/2010-2-16_55433_DSCN1175.JPG Eric's Avatar

    Eric

    Financial Manager

    Satisfied Customers:

    558
    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Accountant

    Satisfied Customers:

    397
    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    324
    NASD Licensed Rep, 1997-2001, Business Attorney