Which factors into DTI? What I make or what my LLC makes?

[Nicholas Lohr]

Quick questions about DTI. My LLC, which is a separate business from anything real estate related, consistently makes about $3,500 a week in profit, but as the sole member and owner of my LLC I am on the payroll at $1,200 a week. The rest just goes into the business bank account. Will a conventional lender use the 3k or the 1.2k to factor my DTI? If it is the 1.2k any suggestions on how to get them to use the 3k instead?

[David Hines]

If it's in your name, they'll use the 1.2k. However, as the sole member the LLC profits should show on your tax return. Make sure the lender is reviewing your tax return and they may be able to use the full business profit toward your DTI.