FHA Loan Requirements and Business Expense Deductions in California

FHA Loan Requirements and Business Expense Deductions in California is a post from: FHA,VA and Conventional Home Loans in all 50 States

When you are preparing your income taxes this year and you plan to get a FHA loan to buy a home in California, you will want to pay very close attention to some of your income tax deductions.  For this post I am specifically talking about unreimbursed business expenses.  FHA loan guidelines require these expenses to be deducted from your income to qualify for a FHA loan, so you have to be very careful with these deductions if you plan to get a FHA loan to buy a home in California this year.

Salaried or hourly paid employees often have expenses for their jobs that their employers do not pay for.  There is an area of your income tax returns where you can deduct these expenses called form 2106.  When the FHA home loan lender underwrites your loan, they will deduct these expenses from your income to qualify.  This can cause many borrowers to qualify for a lower purchase price then they thought or disqualify them for a FHA home loan all together.  So pay close attention to these expenses and whether or not you want to deduct them if you plan to get a FHA loan in California this year.

Below are some of the most up-to-date benefits of FHA loans in California:

• FHA loan requirements only require three years to pass after a foreclosure to qualify for a FHA loan, conventional loans require seven years
• FHA loan limits in many counties in cities such as San Francisco, San Jose, Los Angeles, Orange County and San Diego allow FHA loans up to $729,750
• FHA loan credit score does not have to be perfect, give us a call and we can help you analyze your credit
• FHA loan interest rates are still near 60 year lows

Regards,

Rob Chomentowski

Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)

858-922-7899

homeloan8@gmail.com