Can I use corporation's net income to qualify my wife?

[Mike H.]

Here's a tricky one. I have a call in to a couple of lenders but thought I'd ask here first since there tend to be some really good loan qualification people on here.

I'll give you the scenario. The goal is to see if my wife can qualify for a conventional loan.

1) My wife works from home (salon in the basement) but only makes about 10k per year.

2) Our corporation has income from our rental properties that - before depreciation - was roughly 48k last year.

My question is whether any of that corporation income could be used to help qualify my wife for a conventional loan.

Her credit is excellent and we have more than enough in accounts to qualify for the reserve requirement. Its the debt to income ratio that is the problem.

She does have a car loan in her name and thats it.

Any thoughts? Could I use half the corporate income plus her 10k a year to qualify? Could we offset the mortgage against the rental income to essentially net each other out? I'm assuming that she will be able to show that she has owned rental property for 2 years since the corporate return shows up on our joint tax return.