Pay stubs question.

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mansoorm1

27 Posts

Posted - 09/24/2009 : 11:47:08 AM

Hi!
This is the first for me so I figured better ask.
The borrower works at a restaurant. been there several yrs
as a chef.
He sent me his paystubs. The check is just the regular company biz check with gross amount.
It doesnt show any breakdown, withholdings/taxes etc being taken out.
The borrower does report full income based on the gross amount.
Is there going to be a problem with the lender? this is new to me.
Going FHA.
Thanks for for input!

Csolorzano

205 Posts

Posted - 10/11/2009 : 7:35:58 PM

Have you figured out if he is 1099 or W2? This will answer your own question... W2 employees get taxes, medicare, and SS taken out. 1099 do not. I would assume a chef is an employee unless his contract with the owner says differently. Based on the pay method he is a 1099. You will have to use his tax returns to determine his net monthly income based off his annual net.. As long as his monthly net is within proper DTI you should be fine..

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