What EXPENSES can you ADD back when getting a mortgage?

[Kenny Simpson]

I get this question a lot and there is much confusion around this TOPIC.  The confusion is that EVERY lender is NOT created equal and has different guidelines.  If you are S/E ( self employed ) for example you can always ADD back Deprecation/Amortization from your tax returns, in some cases you can ADD back 1 time expenses.  1 time expenses can be; purchased a company car, equipment, did a 1 time upgrade to your office and the list can go on.  Real estate investor, if you did a cost segregation, amortization, depreciation, 1 time expenses, 1 time closing cost Fee's and this can differ from residential financing compared to 5+ financing.  1 time expenses on properties can be new roof, appliances, A/C and bigger ticket items.  Not ALL lenders will allow this and some just don't care if they were 1 time expense or NOT.  It is also helpful when your CPA files your tax returns that he does LIST out all the expenses in the "statement section" of the tax return so there is a break down of expenses and easy to recognize for an underwriter.  

 The most IMPORTANT part of ALL of this is to make sure you are working with a loan officer that has the experience and know exactly where to take your loan to make sure you can  ADD back expenses or the LO runs it up the flag pole upfront with the lender to get the green light.  

Getting the with the right LO can make or break a deal.   

[Mohammed Rahman]

Very helpful to note, thanks for the info @Kenny Simpson!

[Julio Gonzalez]

Great info. Thanks for sharing!