K-1 paper loss while applying personal mortgage?

[Chris Yang]

Hello everyone, trying to get some sights for this topic.

I started to investing in large multifamily syndication deals lately. My understanding is we always want to do accelerated depreciation and/or cost segregation study to create a net loss to reduce tax liability.

I get that! It's brilliant and the beauty of real estate investment. But I plan to buy my primary residence next year and apply for a mortgage. I am worried by the time I am getting those K-1s at losses, are they going to affect my application?

I read some guidelines from Fannie Mae/Freddie Mac, and realize usually depreciation loss for rental units can be added back when calculation rental income on 1040 schedule E part I. But I don't see similar instruction when considering partnership income (schedule E part II).

My questions:

1. When applying personal mortgage, can I use distribution income to qualify while the business is at net loss for taxes purpose?

2. If not for above, is the passive loss going to impact my qualification, assuming it was created by accelerated depreciation? NOI is positive and I get stable cash distributions regularly.

Any input is appreciated!