Addbacks re: Lending for Self Employed/Investors/Biz Owners

[Amy Konopka]

I researched the forums and the last time this question was answered was two years ago and only by one person. I have a few other questions-

1. I've heard interest, depreciation, even HOA dues are sometimes added back onto income when applying for conventional financing.

Has this changed? Has anyone ever had interest added back on?

2. One of my properties is under a DSCR loan with interest only for three years which will wipe out income on the rent it receives (PITI is 4800, rent received is $5000)

Anyone ever reaped benefits like that with an interest only loan (doubt it, thought I'd ask!)

3.  I intended to place property purchased in Aug 2023 in service this year and claim two months' rent even though I technically pay myself the rent through my Property Management company that LEGITIMATELY does pay rent/mortgage for using the property as a Recovery Residence.

Will this short time period put me in the books as placed in service for "at least one year" since some lenders look just for placement on Schedule E on tax returns? Anyone ever see that?  Debating on holding off til 2024.

4.  Anyone lenders out there with tricks of the trade that can help us get a loan faster?

Thanks for your insight

[Jay Hurst]

Quote from @Amy Konopka:

I researched the forums and the last time this question was answered was two years ago and only by one person. I have a few other questions-

1. I've heard interest, depreciation, even HOA dues are sometimes added back onto income when applying for conventional financing.

Has this changed? Has anyone ever had interest added back on?

2. One of my properties is under a DSCR loan with interest only for three years which will wipe out income on the rent it receives (PITI is 4800, rent received is $5000)

Anyone ever reaped benefits like that with an interest only loan (doubt it, thought I'd ask!)

3.  I intended to place property purchased in Aug 2023 in service this year and claim two months' rent even though I technically pay myself the rent through my Property Management company that LEGITIMATELY does pay rent/mortgage for using the property as a Recovery Residence.

Will this short time period put me in the books as placed in service for "at least one year" since some lenders look just for placement on Schedule E on tax returns? Anyone ever see that?  Debating on holding off til 2024.

4.  Anyone lenders out there with tricks of the trade that can help us get a loan faster?

Thanks for your insight

 Your title is asking about self employment but the body is asking about rental income. so sorry if I am misunderstanding but here is the form that an underwriter will use to calculate your rental income:  https://content.enactmi.com/documents/calculators/Form1038.C...

Those items you mention deprecation, interest, HOA dues are always added back along with taxes and insurance.