Calculating DTI with Imputed Income

[Andrew Boehmer]

Hey All, I have been looking into conventional homestyle reno loans and while running numbers to determine my potential back-end ratio i had a thought; does a conventional lender take into account imputed income when determining the DTI?

In my scenario I have a w-2 job that provides health insurance for my domestic partner(soon to be wife). Because of domestic partner tax laws, the portion of healthcare costs that my company pays for my DP is reflected as imputed income on my pay stub. For those that aren’t aware, imputed income is th value of non-money compensation (healthcare) that is taxable. So basically I pay taxes on an extra $700 a month of income that isn’t reflected in my net pay. When I get married my fiancé will qualify as a spouse and the imputed income will no longer show on my stub.

My thought was I could try to get a loan I place before the imputed income fell off my pay stub if the imputed income could be used to determine a better DTI.

Any thoughts and advice is appreciated!