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Updated over 4 years ago,
Lender wont count rental income in DTI if taxes are self filed?!
Has anyone heard of a newly released IRS rule that requires you to file with a professional if you want to use rental income in your DTI for new loan qualification purposes? I just went to get preapproved and my lender is telling me that since I self filed for 2019 they now wont count my income from my other rental properties. If this is true, and since I need to make an amendment anyways, can I file the amendment with a CPA and have that count? Crazy that he just sprung this on me, I have no words and have never heard of this before. I can ask him for the specific rule number.
He said because lending is tightening and people can fudge rental income numbers if self filing that the IRS made this new rule. I have saved up cash and am actively looking for my next rental but this has stopped me in my tracks.